Financing of planned expenditures Is a primary reason why ﬁrms have cash surpluses.

Name: Financing of planned expenditures Is a primary reason why ﬁrms have cash surpluses.
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Firms tend to accumulate cash reserves to finance their planned expenditures such as capital expenditures, research and development, and other strategic investments. This helps them avoid borrowing at higher interest rates and maintain control over their financial operations.

Financing of Planned Expenditures Is a Primary Reason Why ﬁRms