0
A company holding too much cash would be giving up the opportunity to invest more in income producing assets.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Why firms hold cash?
there are basically three reasons why firms hold cash, namely speculation precaution transaction
What are the motives for holding cash?
There could be many reasons for a company wanting to hold cash. They might be in acquisition mode and be negotiating to buy equipment or other companies. The company may require the cash for cash flow purposes in the near future. The company may have plans to pay the cash out as a dividend in the near future. Holding cash however can be dangerous because in some cases it makes a company vulnerable to a takeover bid, or the company may miss out on investment opportunities that could bring the company additional return.
Why do companies offer cashback incentives?
Companies offer cash back incentives in order to attract consumers to their product. It makes the consumer feel as if they are getting something in return for buying a certain product. At the same time, the company gets to hold on to the money for a short time and this shows an increase in cash flow for that company.
What are the advantages and disadvantages of the aggressive working capital financing approach?
Companies hold cash to make necessary payments, to take advantage of opportunities as they arise, and to cover unforeseen emergencies.
What is the definition of Transaction motive?
A desire to hold cash in order to conduct cash-based transactions.
Why firms hold cash?
there are basically three reasons why firms hold cash, namely speculation precaution transaction
What are the motives for holding cash?
There could be many reasons for a company wanting to hold cash. They might be in acquisition mode and be negotiating to buy equipment or other companies. The company may require the cash for cash flow purposes in the near future. The company may have plans to pay the cash out as a dividend in the near future. Holding cash however can be dangerous because in some cases it makes a company vulnerable to a takeover bid, or the company may miss out on investment opportunities that could bring the company additional return.
What are motives for holding cash?
There could be many reasons for a company wanting to hold cash. They might be in acquisition mode and be negotiating to buy equipment or other companies. The company may require the cash for cash flow purposes in the near future. The company may have plans to pay the cash out as a dividend in the near future. Holding cash however can be dangerous because in some cases it makes a company vulnerable to a takeover bid, or the company may miss out on investment opportunities that could bring the company additional return.
For what reasons do you have money?
According to John Maynard Keynes (Liquidity Preference Theory - Keynesians), people hold cash for three main reasons: Transactions purposes, precautionary purposes and speculative purposes.
When was Hold On - Rosanne Cash song - created?
Hold On - Rosanne Cash song - was created in 1986.
Why do companies offer cashback incentives?
Companies offer cash back incentives in order to attract consumers to their product. It makes the consumer feel as if they are getting something in return for buying a certain product. At the same time, the company gets to hold on to the money for a short time and this shows an increase in cash flow for that company.
Who makes a hair gel that compares to Jheri Redding mega a hold gel?
The primary component is sticky glue. yes, that is what companies put int their product
What are the advantages and disadvantages of the aggressive working capital financing approach?
Companies hold cash to make necessary payments, to take advantage of opportunities as they arise, and to cover unforeseen emergencies.
What kind of cars are wanted for cash?
At the present time it is possible to receive cash for virtually all cars. If a car is not drivable or beyond repair it can still easily be hold for scrap. As scrap metal prices are very high at the moment, there are many companies willing to pay cash for cars in any condition.
Why do companies have business events?
Many businesses in today's world hold business events for a large variety of reasons. The events can get the word out about their business to many leaders in the community.
What institutions hold blood or cash?
BANK
How many states will hold a primary or a caucus on March 6?
Ten States will hold a primary or caucus on March 6.
