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

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The goal of a company's cash management policy is to reduce the need to borrow by managing their cash inflows and outflows efficiently. This can be achieved through strategies such as optimizing accounts receivable and accounts payable, managing inventory levels, and investing excess cash in short-term instruments. Increasing the cash conversion cycle or payment period would actually have the opposite effect of increasing the need to borrow, while maximizing cash outflows would not be a desirable goal for a company's financial health.

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