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When a Firm Has Excessive Cash, Managers May Make Use

question 88

Multiple Choice

When a firm has excessive cash, managers may make use of the funds in an inefficient manner. This is also referred to as the ________ cost of retaining cash.

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Definitions:

Tariff

A tax imposed by a government on goods or services imported from other countries, often used to protect domestic industries.

Domestic Producers

Refers to manufacturers and suppliers that create goods and services within a country's borders, contributing to its economy.

Domestic Consumers

Individuals or households within a country that purchase goods and services for personal use, as opposed to businesses or foreign buyers.

Tariff

A tax imposed by a government on imported goods or services to protect domestic industries or generate revenue.

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