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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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