[Get Solution]Assets in the Form of Cash

Identify the factors that influence the amount of cash/bank balances an organization will hold at any one time. You will need to consider the following questions.  Why do organizations hold some of their assets in the form of cash? What are the costs of holding too much cash? What are the costs of having too little cash? To what extent are the reasons for holding cash similar to those for holding stock? I have included 2 examples that you can use and reword please do not just copy these.

 

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