Firms are motivated to improve cash flow

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Reference no: EM131179918

Firms are motivated to improve cash flow EXCEPT by:

Having the cash necessary to perform daily operations.

Increasing cash balances in non-interest bearing checking accounts.

Increasing short-term investment of cash surpluses.

Minimizing short-term borrowings in the event of cash deficits.

True or False _____Firms are motivated to slow collections float and expedite disbursement float.

True or False_____Opportunity cost includes maintaining idle balances dispersed across many accounts at multiple banks which ties up cash.

A firm that has small daily cashflows, minimal computer facilities, and untrained treasury personnel, would tend to use a disbursement system that is:

Manual and paper-based.

Automated and ACH-based.

Electronic with a focus on wires for funding.

Reference no: EM131179918

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