The main objective of cash management is to maintain a high level of cash so that profitability is NOT affected and payment of long-term commitments is possible.

Question

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The main objective of cash management is to ensure there is enough cash to meet the immediate needs of the business (like paying bills and making short-term investments) while optimizing the level of cash held, to avoid excessive cash that could otherwise be invested for growth. It does not focus on maintaining a high level of cash for long-term commitments, but rather on balancing liquidity with minimizing idle cash.

The Main Objective of Cash Management Is to Maintain a High