The goal of a firm's cash management is to
A) minimize the cash requirement.
B) increase the payment period.
C) maximize cash outflows.
D) increase the cash conversion cycle.

Question

Quizplus · Accepted Answer

The goal of a firm's cash management is to minimize the cash requirement. This means that the firm wants to have enough cash available to meet its obligations, but not so much that it is sitting idle and not earning a return. By minimizing the cash requirement, the firm can increase its profitability and reduce the risk of cash shortages.

The Goal of a Firm's Cash Management Is to