Companies with the largest cash balances reduce their risk of insolvency and thus maximize the value of the companies for their shareholders.

Name: Companies with the largest cash balances reduce their risk of insolvency and thus maximize the value of the companies for their shareholders.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

While large cash balances can reduce insolvency risk, they do not necessarily maximize shareholder value, as excess cash might be better invested in growth opportunities or returned to shareholders.

Companies with the Largest Cash Balances Reduce Their Risk of Insolvency