If There Is a Tax Disadvantage to Retaining Cash,why Do

question 99

Essay

If there is a tax disadvantage to retaining cash,why do some firms accumulate large cash balances?

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Definitions:

Extinction

In psychology, extinction refers to the gradual weakening and eventual disappearance of a learned response, often due to the absence of reinforcement that initially established the response.

Conditioned Stimulus

A previously neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, evokes a conditioned response.

Generalization

The process of extending the application of a principle or conclusion to many situations without additional evidence.

Discrimination

This refers to the unfair or prejudicial treatment of individuals based on characteristics such as race, age, or gender.