Explore BrainMass
Share

Explore BrainMass

    Working Capital Management Questions

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What are the two principal reasons for holding cash? Can a firm estimate its target cash balance by summing the cash held to satisfy each of the two reasons?

    What are the four elements of a firm's credit policy? To what extent can firms set their own credit policies as opposed to having to accept policies that are dictated by "the competition"?

    © BrainMass Inc. brainmass.com October 9, 2019, 9:27 pm ad1c9bdddf
    https://brainmass.com/business/working-capital-management/working-capital-management-questions-185109

    Solution Preview

    What are the two principal reasons for holding cash? Can a firm estimate its target cash balance by summing the cash held to satisfy each of the two reasons?

    The two principal reasons for holding cash are for transactions and compensating balances. The ...

    Solution Summary

    This posting provides a detailed solution to the student's questions.

    $2.19