Yesterday,the president of RB Enterprises received a phone call from DLK,a competitor.DLK is a sole proprietorship.An unexpected family situation has caused the owner to suddenly want to retire and relocate closer to his family.Thus,the assets of DLK are being offered to RB Enterprises at a bargain basement price.While RB Enterprises had not anticipated purchasing these assets,it was decided that the opportunity was too good to pass up.This illustrates which of the following needs to hold cash?

Question

Quizplus · Accepted Answer

This situation illustrates a speculative need to hold cash, as RB Enterprises decided to purchase the assets of DLK due to an unexpected opportunity that was too good to pass up, indicating a speculative motive for holding cash to take advantage of unforeseen opportunities.

Yesterday,the President of RB Enterprises Received a Phone Call from DLK,a