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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.
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Why does a high interest rate discourage people from holding their money in cash?
They can earn interest on the cash if it is invested.
What are the cost and benefits of holding cash?
Benefit of holding cash is that it can be use in emergancy needs as well as it can be invested in some marketable securities or profitable investment activities while if less or not excess cash maintain then it can be harm the overall operations of business as in case of emergancy or in case of profitable investing opportunities if cash is not available those opportunities may be not avail by company so there are cost and benefits for having no cash or too much cash so it is the duty of financial managers to find the optimal between no cash and too much cash in hand.
What are the primary reasons that companies hold cash?
A company holding too much cash would be giving up the opportunity to invest more in income producing assets.
What are the Motives of privatization?
privatization motives are the following : efficiency, receipts and the rationalism
What are the motives for providing credit in a foreign market?
stuff
Motives of holding cash?
1 - Transaction motive 2 - Precautionary motive 3 - Speculative motive
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.
What are the three motives for holding money according to Keynes' theory of money demand?
1.Transaction motives: To make payments or purchases 2.Precautionary motives: To meet unforseen contingencies 3.Speculative motives: It being the safest asset in wealth portfolio. Other assests possess uncertainty and no liquidity.
Why does a high interest rate discourage people from holding their money in cash?
They can earn interest on the cash if it is invested.
Why does high interest rate discourage people from holding their money in cash?
They can earn interest on the cash if it is invested.
Who is responsible for holding the petty cash fund?
An Accountant or Accounts clerk is typically responsible for Petty Cash,
What is the classification of motives by hilgard?
Hilgard categorized motives into survival motives, social motives, and ego-integrated motives.
What are the cost and benefits of holding cash?
Benefit of holding cash is that it can be use in emergancy needs as well as it can be invested in some marketable securities or profitable investment activities while if less or not excess cash maintain then it can be harm the overall operations of business as in case of emergancy or in case of profitable investing opportunities if cash is not available those opportunities may be not avail by company so there are cost and benefits for having no cash or too much cash so it is the duty of financial managers to find the optimal between no cash and too much cash in hand.
What are the three motives for holding money according to Keynes's theory of money demand?
1.for transactionary motive 2.for precautionary motive 3.for speculative motive.
What is the journal entry for parent company paid rent to holding company?
Parent company journal entry Debit cash | Credit accounts payable - rent Holding company journal entry Debit accounts receivable - rent | Credit cash
What are the three types of motives?
The three types of motives are biological motives, social motives, and personal motives. Biological motives are driven by physiological needs such as hunger and thirst. Social motives are influenced by interpersonal interactions and relationships. Personal motives are driven by individual desires and goals.
Can a business owner holding a check from the business make a check payable to cash and cash it at the bank?
yes no mabey......im only fourteen...lol...in ur face
