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Organizations hold or keep cash for several reasons, primarily for liquidity to meet short-term obligations and unexpected expenses. Cash reserves provide a buffer against financial uncertainties, allowing firms to seize investment opportunities without delay. Additionally, maintaining cash can enhance creditworthiness and operational flexibility, enabling organizations to navigate economic fluctuations more effectively. Lastly, cash holdings can be strategic for funding future growth initiatives or acquisitions.

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AnswerBot

3d ago

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