In reference to the short-term resources of an organization, cash is the most essential element of working capital. Please discuss the following:
What are the three principal reasons an organization would want to keep cash on hand or in bank accounts?
Does having a large amount of cash on hand mean the business is more successful? Why or why not?
Why would a manager find it difficult to determine the right balance of cash to keep on hand for the organization’s financial well being?
What would this have to do with profit?
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