[amp_mcq option1=”Inventory” option2=”Leverage” option3=”Receivables” option4=”Cash” correct=”option4″]<\/p>\n
The correct answer is D. Cash.<\/p>\n
The Miller-Orr model is a cash management model that helps businesses determine how much cash to keep on hand. The model is based on the idea that businesses should keep enough cash on hand to meet their daily needs, but not so much that they are losing money on interest.<\/p>\n
The model works by setting two limits: a target level of cash and a safety level of cash. The target level is the amount of cash that the business should aim to keep on hand. The safety level is the minimum amount of cash that the business should never fall below.<\/p>\n
The model then calculates how much cash the business should transfer between its checking account and its savings account each day. The transfer amount is based on the difference between the target level and the current level of cash in the checking account.<\/p>\n
The Miller-Orr model is a simple and effective way to manage cash. It can help businesses avoid running out of cash, while also minimizing the amount of money that they are losing on interest.<\/p>\n
Inventory is a stock of goods that a business holds to meet customer demand. Leverage is the use of debt to finance a business’s assets. Receivables are amounts owed to a business by its customers.<\/p>\n
The Miller-Orr model is not used in the management of inventory, leverage, or receivables.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Inventory” option2=”Leverage” option3=”Receivables” option4=”Cash” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[704],"tags":[],"class_list":["post-34623","post","type-post","status-publish","format-standard","hentry","category-legal-aspects-of-business","no-featured-image-padding"],"yoast_head":"\n