Asked by Aufata Aiesi on Jun 24, 2024
Verified
The BAT model is more useful than the Miller-Orr model because the Miller-Orr model is too complex for most firms.
BAT Model
Stands for the Biodiversity Assessment Tool, a method used to evaluate or predict the impacts of development projects on biodiversity.
Miller-Orr Model
A financial model that helps in managing cash balances by setting upper and lower limits on cash reserves.
- Investigate the pluses and minuses of the BAT model regarding cash prediction needs and the adept management of liquidity.
- Comprehend the procedures and benefits of the BAT and Miller-Orr models in overseeing cash holdings.
Verified Answer
AN
Agathy Nguy?nJun 26, 2024
Final Answer :
False
Explanation :
The usefulness of the BAT model versus the Miller-Orr model depends on the specific needs and capabilities of a firm, not solely on complexity. The Miller-Orr model provides a more dynamic framework for managing cash balances that can be beneficial for firms with more volatile cash flows.
Learning Objectives
- Investigate the pluses and minuses of the BAT model regarding cash prediction needs and the adept management of liquidity.
- Comprehend the procedures and benefits of the BAT and Miller-Orr models in overseeing cash holdings.
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