Cash management involves the determination of the _____.

Question

Quizplus · Accepted Answer

Cash management involves determining the optimal size of a firm's liquid asset balance. This means finding the right balance between having enough cash on hand to meet financial obligations and investing excess cash to earn a return. Option A is incorrect because cash management is not just about minimizing asset balances. Option B is incorrect because cash management does not involve setting a maximum amount of dividends to be paid. Option D is incorrect because cash management is concerned with short-term financial management, not long-term financial alternatives.

Cash Management Involves the Determination of the _____