Speculative motive is a reason for a ﬁrm to maintain liquidity.

Question

Quizplus · Accepted Answer

The speculative motive refers to the desire of a firm to hold onto liquid assets as a precaution against unexpected opportunities or future uncertainty. They may keep extra cash on hand to take advantage of potential investments, acquisitions, or other business opportunities that may arise. Therefore, maintaining liquidity is a reason for a firm to have a speculative motive.

Speculative Motive Is a Reason for a ﬁRm to Maintain