The goal of a company's cash management policy is to

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The goal of cash management policy of a company is to minimize the cash requirement. This involves efficiently managing the inflow and outflow of cash, optimizing the cash balance, investing idle cash, and controlling the cost of capital. It is essential to maintain an adequate cash balance to meet daily operational needs and unexpected contingencies, but excess cash holding adds to the cost of capital. Therefore, the policy must aim to strike a balance between the liquidity needs and cost of capital.

The Goal of a Company's Cash Management Policy Is to