A sensible cash management policy would be to:

Question

Quizplus · Accepted Answer

Holding enough cash on hand to meet ordinary business needs is essential for any company, as it ensures that the business can continue to operate without disruptions due to cash flow issues. Additionally, having excess cash to invest in marketable securities provides a measure of safety and liquidity, which can be beneficial in times of economic uncertainty or unexpected business expenses. Having nearly enough cash on hand (option B) or enough cash to meet any potential demand for cash (option C) may not be sufficient in times of unexpected events or periods of financial stress. Option D is not a practical or feasible approach to cash management for most businesses.

A Sensible Cash Management Policy Would Be To