× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
Aleja Aleja
wrote...
Go to Answer
Posts: 104
Rep: 0 0
5 years ago
The text outlines several reasons to hold cash. The three primary reasons are;
   (T) Transactional motive – holding cash that will be used to pay for normal business operations.
   (P) Precautionary motive – holding cash as a reserve for unexpected events or emergencies.
   (S) Speculative motive – holding cash to take advantage of bargains or opportunities that arise unexpectedly.

Identify whether the following uses of cash are transactional, precautionary, or speculative by placing the letter associated with each type of use in the blank. 

1.                   Blown engine in the delivery truck.
2.                   The monthly electric bill.
3.                   To make payroll.
4.                   To stock up on raw materials priced 30% below normal.
5.                   To buy the adjacent property just listed for future expansion.
Read 41 times
1 Reply
Reading and Writing About Contemporary Issues
Replies
Answer verified by a subject expert
toripollard8toripollard8
wrote...
#1
Posts: 486
Rep: 13 0
5 years ago
Sign in or Sign up in seconds to unlock everything for free
1

Related Topics

Aleja Author
wrote...

5 years ago
Good timing, thanks!
mkyoungs
wrote...

Yesterday
Helped a lot
Chaldoren
wrote...

2 hours ago
Correct Slight Smile TY
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1276 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 228
  
 2478
  
 326
Your Opinion
Previous poll results: Where do you get your textbooks?