The objectives of cash management include to:
A)earn a return.
B)hold cash to a minimum consistent with efficient operation.
C)ensure adequate liquidity.
D)Both b & c.
E)All of the above

Question

Quizplus · Accepted Answer

The objectives of cash management include holding cash to a minimum consistent with efficient operation (B) to avoid unnecessary holding costs and ensuring adequate liquidity (C) to meet financial obligations as they arise. Additionally, earning a return (A) is important in optimizing cash utilization but it is not always the primary objective of cash management. Therefore, option D, both b & c, is the best answer. Option E, all of the above, is not accurate because earning a return is not always a primary objective of cash management.

The Objectives of Cash Management Include To