Investing all cash to maximise returns to the business is a more effective management of cash than ensuring cash is available to pay debts as they fall due.

Question

Quizplus · Accepted Answer

While investing cash to maximise returns is important, it is equally important to ensure that cash is available to pay debts when they fall due. Failing to do so can result in financial distress and damage to the business's reputation. Effective management of cash should involve a balance between investing for growth and ensuring sufficient liquidity to meet financial obligations.

Investing All Cash to Maximise Returns to the Business Is