For modern corporations, the more cash they have, the better off they are.

Question

Quizplus · Accepted Answer

While it is important for corporations to have sufficient cash to operate, having too much cash can actually have negative consequences. Holding excessive cash can result in lower returns for shareholders, decreased motivation and innovation, and the possibility of the company making poor investment decisions just to use up excess cash. Therefore, having an optimal amount of cash is more beneficial than simply having more cash.

For Modern Corporations, the More Cash They Have, the Better