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      Question

      The primary objective of Cash Management is

      to:
      A Maximize the amount of cash held by the company. Correct Answer Incorrect Answer
      B Ensure that the company has sufficient cash to meet its obligations while minimizing idle cash balances. Correct Answer Incorrect Answer
      C Invest all surplus cash in long-term projects. Correct Answer Incorrect Answer
      D Delay payments to suppliers as long as possible. Correct Answer Incorrect Answer

      Solution

      Effective cash management aims to strike a balance. It ensures the company has enough liquidity to pay its bills on time, avoiding insolvency, while also ensuring that excess cash is not sitting idle but is invested to earn a return.

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