3. List some of the primary tools of cash management. Describe the advantages and disadvantages of these tools
The response addresses the queries posted in 572 words with references.
//In this discussion paper, cash management and its tools are analyzed in a descriptive manner. Prior to understanding the tools of the cash management, it is better to understand the concept of cash management. In this series, in the first section of the discussion, I am providing the concept of cash management under the heading introduction.//
Cash management is the process of managing the cash balances of a business in such a way as to maximize the accessibility of cash not invested in fixed assets or inventories and also so as to stay away from the risk of bankruptcy. The main purposes for managing cash are: the transactions motive; the precautionary motive; and the speculative motive. Cash is lifeblood for the business.
//After having a good knowledge of the cash management concept, the reader can understand the tools of cash management ...