The manager of a seasonal products firm keeps excess cash on hand, particularly after the holiday season, to take advantage of retailers looking to sell excess inventory at below cost. The manager is holding cash for _________________.

Question

Quizplus · Accepted Answer

The manager is holding cash for speculative reasons, as they aim to take advantage of potential opportunities to purchase excess inventory at below cost from retailers. This involves speculation on future benefits from such transactions.

The Manager of a Seasonal Products Firm Keeps Excess Cash