One of the challenges of effective financial management is
A) to have sufficient cash on hand without compromising the firm's investment potential.
B) ensuring the satisfaction of each of the stakeholder groups.
C) working within the strict regulations of the Financial Accounting Standards Board (FASB).
D) providing the financial data in a timely manner for management consultants to improve decision making.

Question

Quizplus · Accepted Answer

Having sufficient cash on hand is crucial for a company's day-to-day operations and to take advantage of investment opportunities. However, too much cash can also mean missed investment opportunities that could help the company grow. Therefore, financial management must balance the need for cash with the need to invest for growth.

One of the Challenges of Effective Financial Management Is