Fundamentals of Corporate Finance Standard Edition
Fundamentals of Corporate Finance Standard Edition
10th Edition
ISBN: 9780078034633
Author: Stephen Ross, Randolph Westerfield, Bradford D. Jordan
Publisher: MCGRAW-HILL HIGHER EDUCATION
Question
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Chapter 19, Problem 19.1CTF
Summary Introduction

To discuss: The definition of cash management.

Introduction:

The fundamental objective of cash management is to maintain the adequate cash investment and simultaneously the firm’s operation are also maintained effectively and efficiently.

Expert Solution & Answer
Check Mark

Explanation of Solution

Cash management indicates a broad area of finance that refers to the process of handling and using of cash in the business. It includes evaluating the cash flow, market liquidity, and investments.

Conclusion

Cash management is necessary because the businesses are motivated to hold cash for speculation, precaution, and for carrying out business-related transactions.

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Fundamentals of Corporate Finance Standard Edition

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