What are the three motives for holding cash?
What will be an ideal response?
The Transactions Motive: balances held for transaction purposes allow the firm to meet its cash needs that arise in the
ordinary course of doing business. The Precautionary Motive: precautionary balances serve as a buffer. This motive for
holding cash relates to the maintenance of balances used to satisfy possible, but as yet unknown, needs. The
Speculative Motive: cash is held for speculative purposes in order to take advantage of potential profit-making
situations. Construction firms that build private dwellings will, at times, accumulate cash in anticipation of a
significant drop in lumber costs.
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According to historian Gary Cross, consumerism expresses a less powerful worldview than political ideologies.
a. true b. false
A hospital benchmarked against a Ferrari racing team in an effort to:
A) improve patient handoff quality. B) increase surgery prep time. C) lengthen surgery duration. D) reduce the number of doctors. E) all of the above