Stand in front of the financial management task double-edged is the first aim of the liquidity of any investigation the largest cash balance as possible in addition to the assets of the approach of a large exchange, and the second goal of profitability is to achieve the highest rate of net profit to the funds invested. Spite of the fact that these two objectives are interrelated, but they were contradictory, too.
And the consequent financial management theory that correspond to cash inflow with cash flows to minimize the presence of excess cash balances. However, it can not practically achieve this, influx home and abroad to cash flow can not predict them accurately. It's also very rare that Atadela: If you resort to protect the financial management facility with a cash balance to maintain.
Whenever she wanted to protect property against the risk of stop dam commitments (by increasing the cash balance, whenever led to a reduction in revenues and therefore their profits for the long term., And hence the importance of a balance between the goals of liquidity and profitability, so that the financial decisions which are taken by management based on sound and accurate into consideration the surrounding circumstances.
التسميات
Concepts of financial management