What are the advantages and disadvantages of holding a large reservoir of cash?© BrainMass Inc. brainmass.com March 21, 2019, 5:47 pm ad1c9bdddf
- Choice - having excess cash reserves gives the company a range of choices to do many things with that excess cash. They could invest in new technologies to create future growth, they could give back some of that excess cash to shareholders in the form of dividends or they could use that excess cash to generate interest. ...
This solution outlines the advantages & disadvantages of holding a large amount of cash.