Thursday, December 15, 2011

Which of the following statements is the least consistent with modern cash management theory?

a. If a company keeps too much cash on hand, a corporate raider could use the excess cash as part of the financing of a hostile take-over.


b. Keep more cssh than is needed increases the company's ability to weather a short-term recession.


c. The more cash a company keeps, the less creative its management appears to stock market analysts.


d. The more cash a company keeps, the better off it is at all times.|||A) A corporate raider finds companies that are vulnerable to a hostile take-over. Generally, this means the company will have an equitable amount of liquid assets or disposable assets.


So it could be A, because A is true.


B)Also true..


D) Not true, sometimes investing more money is a good idea. If you invest nothing you can expect a negative return (with respect to inflation making the money under your mattress worth less in a year).





So.. Sorry I don't know:P but hopefully that helps you narrow down which ones it could be|||A

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