Ch16 Essay 1 Paragraph - kept on hand to pay bills. Most...

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Essay Questions E 23. (p. 491-492) Why would a firm want to invest its idle cash? Cash ties up business funds just as investments in inventory or plants and equipment do. Unused or idle cash earns no money so financial managers try to minimize the amount of cash
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Unformatted text preview: kept on hand to pay bills. Most businesses invest any cash not needed for such transactions in marketable securities or use it to reduce debt. AACSB: Reflective Thinking A Bloom's Taxonomy: Comprehension B Difficulty: Medium D Learning Objective: 1 L...
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