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Principle motives for holding cash and near cash assets

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1. Briefly identify and explain the principle motives for holding cash and near cash assets.

2. What are the risk-return trade-off associated with inventory management?

3. Explain how an agressive (verus a conservative ) asset management position influences:
(a) level of currents assets
(b) the cash conversion cycle
(c) interest costs
(d) risk and return

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This explains the principle motives for holding cash and near cash assets.

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1. Briefly identify and explain the principle motives for holding cash and near cash assets.

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