If a firm expects short-term cash surpluses, it can plan ________.

Name: If a firm expects short-term cash surpluses, it can plan ________.
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Question

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Short-term investments would be the best choice for a firm that expects short-term cash surpluses. This would allow the firm to earn some return on its cash while it is not needed for immediate operations, without committing to long-term investments or taking on additional debt through short-term borrowing or leverage decisions.

If a Firm Expects Short-Term Cash Surpluses, It Can Plan