The goal of a firm's cash management is to
A) increase the cash conversion cycle.
B) increase the payment period.
C) minimize cash requirement.
D) maximize cash outflows.

Question

Quizplus · Accepted Answer

The goal of a firm's cash management is to minimize the cash requirement. This means that the firm wants to optimize the amount of cash it needs to have on hand in order to meet its obligations and maintain its operations. Minimizing cash requirements can be achieved through efficient cash management practices such as cash forecasting, cash budgeting, and effective use of payment systems. The other options, increasing cash conversion cycle and payment period or maximizing cash outflows, would have a negative impact on the firm's cash position and liquidity.

The Goal of a Firm's Cash Management Is to