Similarity in the Motives for Holding Cash and holding Inventory ?
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It is possible to identify the major motives for holding inventories: The transaction motivepropels a business to maintain inventories so that there are no bottlenecks in production and on sales. It is natural for a business to plan inventory investment commensurate with the level of transactions in the business.
miasarin43:
Well.. that's a point and What's the similarity in Holding Cash and holding inventory by the firm ?
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