2. cash
• Cash is the lifeblood of any business
enterprise. While cash is the most liquid
current asset, all other current asset like
inventory and receivables are also converted
into cash.
3. Motives of holding cash
• There are 4 primary motives for any company
to hold cash,
1. For transactions
2. As a precaution
3. For speculation
4. As compensation
4. Objectives of cash mgt
• Meeting the disbursement schedule.
• Minimizing balance of cash
5. Factors influencing requirement of
cash balance
• Inflow and outflow of cash
• Short costs
• Opportunity cost of excess cash
• Uncertainty