• COLLECTION AND DISBURSEMENT
• OPTIMAL CASH BALANCE
• CASH MANAGEMENT MODELS
• SHORT-TERM INVESTMENT DECISIONS
• FURTHER READING:

Cash management is a broad area having to do with the collection, concentration, and disbursement of cash including measuring the level of liquidity, managing the cash balance, and short-term investments.

If at any time, because of a lack of cash, a corporation fails to pay an obligation when it is due, the corporation is insolvent. Insolvency is the primary reason firms go bankrupt. Obviously, the prospect of such dire consequence compels companies to manage their cash with care. Moreover, efficient cash management means more than just preventing bankruptcy. It improves the...