According to your book Financial Management for Small Businesses, 2nd OER Edition, In the management of cash and marketable securities, why should the primary concern be for safety and liquidity rather than maximization of profit?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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According to your book Financial Management for Small Businesses, 2nd OER Edition, In the management of cash and marketable securities, why should the primary concern be for safety and liquidity rather than maximization of profit?

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Step 1: Introduction:

Cash management: Cash management is the process of controlling an organization's cash flows. It entails the control of cash payments and receipts. In other words, it refers to having control over the income-collecting process and the payment of expenses or liabilities.

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