The fact that companies may keep extra cash available to take advantage of unexpected "bargains", such as the opportunity to purchase raw materials very cheaply is best described as:

Question

Quizplus · Accepted Answer

The speculative motive refers to holding cash to take advantage of potential short-term opportunities, such as purchasing raw materials at a lower cost than usual. This allows companies to potentially increase their profits by speculating on future market conditions.

The Fact That Companies May Keep Extra Cash Available to Take