What are the motive for holding cash and inventory? Point out the difference and similarities between these motives?
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Motives for holding cash and inventory are to run any business smoothly.
Since both of the factors are important, for making the payment- carrying on the transactions- managing the taxes and other expenditure.
Major difference lies in the money format, which is varied from the inventory. Though both are vital for any business to sustain and grow.
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What are the motive for holding cash and inventory? Point out the difference and similarities between these motives?
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