What is cash management and motives for holding cash management?
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Cash management is the corporate process of collecting and managing cash, as well as using it for (short-term) investing. It is a key component of ensuring a company's financial stability and solvency
Motives for Holding Cash
Transaction Motive: The transaction motive refers to the cash required by a firm to meet the day to day needs of its business operations. ...
Precautionary Motive: The precautionary motive refers to the tendency of a firm to hold cash, to meet the contingencies or unforeseen circumstances arising in the course of business.
Motives for Holding Cash
Transaction Motive: The transaction motive refers to the cash required by a firm to meet the day to day needs of its business operations. ...
Precautionary Motive: The precautionary motive refers to the tendency of a firm to hold cash, to meet the contingencies or unforeseen circumstances arising in the course of business.
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