Ch7 Hw Answers

Chapter 7 Current Asset Management Discussion Questions 7- l. In the managemem of cash and marketable securities, why s

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Chapter 7 Current Asset Management Discussion Questions 7- l.

In the managemem of cash and marketable securities, why should the primary concern be for safety and liquidity rather than maximization of profit? Cash and marketable securities are generally used to meet the transaction needs of the lirm and for contingency purposes. Because the funds must be avai lable when needed, the primary concern should be with safety and liquidity rather than the maximum profits.

7-2.

Explain the simi larities