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Primary motives for holding cash

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1. What are the reasons for not wanting to hold too little working capital? For not wanting to hold too much?

2. What are the two primary motives for holding cash?

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What are the reasons for not wanting to hold too little working capital? For not wanting to hold too much?
Working capital management involves the relationship between a firm's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that a firm is able to continue its operations and that it has ...

Solution Summary

The response discusses primary motives for holding cash. The reasons for not wanting to hold too little working capital is determined.

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