The most important reasons firms hold cash balances are the transaction and precautionary

In June, Leslie wins a cash prize of $2,000. She plans to use this money to pay her tuition bill in September. Leslie puts this money in a savings account because her main priority is _____.

(A) Receiving the maximum amount of interest possible. (B) Liquidity, since she'll need to use the money in a short time. (C) Making a safe long-term investment. (D) Taking a risk in hopes that she'll get a high return.

Gerard Kleisterlee, former CEO of Royal Philips, gathered people who wanted to make a contribution to the organization, regardless of rank. What process best describes this example?

a. employee participation b. self-managed teams c. delegation d. empowerment