Typically, business firms should strive to maximize their cash holdings.

Name: Typically, business firms should strive to maximize their cash holdings.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

While having cash on hand is important for a business to cover expenses and invest in future growth, maximizing cash holdings can actually be detrimental. Holding onto too much cash for too long can lead to missed investment opportunities and lower returns. It is important for businesses to find a balance between cash holdings and investments.

Typically, Business Firms Should Strive to Maximize Their Cash Holdings