The BAT model is more useful than the Miller-Orr model because the Miller-Orr model is too
complex for most ﬁrms.

Question

Quizplus · Accepted Answer

The statement is not entirely true. While the BAT model is simpler and more straightforward, it may not necessarily be more useful for all firms. The Miller-Orr model has its advantages, especially for larger firms with more complex cash management needs. Ultimately, the choice between the two models depends on the specific needs and circumstances of each individual firm.

The BAT Model Is More Useful Than the Miller-Orr Model