Desire to invest funds is a primary reason why firms have cash surpluses.

Desire To Invest

The inclination or willingness of individuals or entities to allocate resources to investment opportunities with the expectation of earning a return.

Cash Surpluses

Cash surpluses refer to the amount of cash that exceeds the cash required for day-to-day operations, potentially available for investment or other purposes.

Explore the principal reasons for corporations maintaining surplus funds, encompassing the financing of foreseen expenditures and the investment of monies.

Verified Answer

Emily HurleyJul 14, 2024

Final Answer :

False

Explanation :

Firms may have cash surpluses for various reasons such as operational efficiency, strategic reserve, or seasonal cash flow variations, not primarily for the desire to invest funds.

Learning Objectives

Explore the principal reasons for corporations maintaining surplus funds, encompassing the financing of foreseen expenditures and the investment of monies.

Desire to invest funds is a primary reason why firms have cash surpluses.

Definitions

Learning Objectives

Learning Objectives

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