What is the greatest risk associated with cash management?
A) yields
B) insolvency
C) holding too much cash
D) managing float

Question

Quizplus · Accepted Answer

The greatest risk associated with cash management is insolvency, as holding inadequate cash balance may lead to the inability to pay off debts and bills, causing bankruptcy. Hence, ensuring that a sufficient level of cash balance is maintained is crucial in cash management. The other options are also important considerations in cash management, but they are not as critical as insolvency.

What Is the Greatest Risk Associated with Cash Management