Motives for Holding Cash Homework Help

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Motives for holding cash, is a very useful topic covered under cash management and it is really important to understand it to the core for in depth clarity. There can be different motives for holding cash for a business entity and will vary from enterprise to enterprise basis based on their exact requirements. In order to understand these aspects in a better way you must opt for Motives for Holding Cash Homework Help.

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What are exactly the Motives for Holding Cash?

Cash is a prerequisite in each and every business entity. Nobody can even think about running a business without cash. However the degree of cash that an organization is having may vary depending on its exact requirements. There can be many motives for holding cash but the generally seen motives are discussed as follows-

  • Transaction motive

Here the motive to hold cash is to ensure that the day to day transactions of the business run smoothly like payment for goods and services, general office expenditures, daily payment to workers etc.

  • Precautionary motive

Here the motive to hold cash is to keep certain reserves for unforeseen situations such as cash shortage, any emergency where a lot of cash may be needed etc.

  • Speculation purposes

Sometimes the firms may hold cash, thinking to invest it in those options which can offer a good rate of return. There are many speculative investment opportunities in the market and many organizations tap this potential.

  • For meeting future obligations-

Companies hold cash for future payments like dividends, taxes, purchasing of new assets, buy back, loan payment etc.

  • Compensating motive

An organization also needs to pay cash to the banker for the services rendered in day to day working of the business.

Thus these are the generally seen motives for holding cash in any business entity and to understand them in detail you must opt for Motives for Holding Cash Homework Helpas soon as possible so that all the concepts can be cleared with perfection.

Why you may get stuck with this topic?

As there can be different motives for holding cash, students often get confused in understanding each motive in the exact sense because although they may look similar but each and every aspect is different from each other. Thus you may get confused in understanding this topic and that is why Motives for Holding Cash Assignment Help is so essential.

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