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In managing cash and marketable securities what should the manager's primary concern?
Wiki User
∙ 10y ago
Liquidity and Safety
Wiki User
∙ 10y ago
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WHAT IS unified global theory of management'- discuss the tendencies favouring?
1. In the management of cash and marketable securities why should the primary concern be for safety and liquidity rather than maximizing of profit? Justify your views.
In the management of cash and marketable securities why should the primary concern be for safety AND liquidity rather than profit maximization?
the firm may hold excess funds in anticipation of cash outlay.when funds are being held for other than immediate transaction purposes, they should be converted from cash into interest-earning marketable securities which should be of highest investment grade usually consist of treasury bills, commercial paper, certification of time deposits from commercial banks realistically, management of cash and marketable securities cannot be separated. management of one implies management of other reasons for holding marketable securities there are several reasons for holding marketable securities such as 1. they serve as a substitute for cash balances many firms prefer to hold marketable securities as a substitute for transaction balances, precautionary balances, for speculative balances of for all three. in most cases the securities are held primarily for precautionary purposes or as a guard against a possible shortage of bank credit. 2. they held as a temporary investment where a return is earned while funds are temporarily idle. 3. they are built up to meet known financial requirements such as tax payments, maturing bond issue and so on. factors influencing the choice of marketable securities among the factors that will influence the choice of marketable securities 1. risk such as a. default risk. the risk that the issuer of the security can not pay the principal or interest at due dates. b. interest rate risk. the risk of declines in market values of the security due to rising interest rate c. inflation rate. the risk that inflation will reduce the real value of the investment. in periods of rising prices, inflation risk is lower on investments whose returns tend to rise with inflation than on investment whose return are fixed. 2. maturity MARKETABLE SECURITIES held should mature or can be sold at the same time cost is required. 3. yield or returns on securities. generally, the higher a security's risk the higher its required return. corporate investors, like other investors must make a trade-off between risk and return when choosing marketable securities. because these securities are generally held either for specific known need or for use in emergencies, the portfolio should consist of highly liquid short-term securities issued by the government or very strong corporations. treasurers should not sacrifice safety for higher rates of return. 4. Marketability (liquidity) risk this refers to the risk that securities cannot be sold at close to the quoted market price and is closely associated with liquidity risk.
What are the types of biological hazard should be of the greatest concern to food establishment managers?
What are the types of biological hazard should be of the greatest concern to food establishment managers? Why?
Why isn't profitability a concern just for managers?
employee's still need there profit just as well the managers do.
what type of biological hazard should be the greatest concern to food establishment managers why?
bacteria
What was the main concern of the environmental movement during the Progressive Era?
managing and conversing natural resources
What type of biological hazards should be greatest concern of food establishment managers why?
bacteria , virus , parasite ..
What type of biological hazards should be greatest concern to food establishment managers. why?
bacteria , virus , parasite ..
True or false The human resource function has become so critical that it is now a concern of all managers?
true
What type of biological hazard should be the greatest concern to food establishment managers?
Bacteria. The hazard is reduced by keeping food cold.
What are the primary concern in starting a business?
Starting a business is not easy in any case. The number 1 concern is if the business will turn a profit. Once that is figured out, many other issues become easier in managing a business.
Discuss the managerial Grid of leadership Style?
Managerial grid is represent a grid with concern for production on x.axis and concern for people on y.axis.There have 4 models in managerial grid.the first one is impoverished style(1,1).in this style,managers have low concern for production and people.manager use this style to preserve job.the main concern for the manager is not to be responsibility for any mistake and less innovative dicisions.the second is country-club style(1,9).this style has a high concern for the people and low concern for the production.managers using this style pay much concern on the employees and comfort them,in hope that this will increase their performance.THE resulting whole company is usually friendly but not very productive.the third model is task style(9,1).this style has a high concern for production and low concern for people.managers using this style and also pressure their employees through rules and punishments to achieve goals.the managers also will provide the employees if performance good.the fourth is middle-road(5,5).managers will keep balance between company and employees needs.by giving fair concern to production and people,managers hope whole company can work natural.the last model is team style(9,9).in this style,the manager will paid concern to the production and people.manager choosing this style to encourage the teamwork and relies heavily on employees to achieve organisation goals.
