Question

day to day cash management is one of the fundamental concepts that a nonfinancial manager should understand in order to:
a. better assess future financing requirements.
b. better understand the role of capital markets in raising l ok ng term funds.
c. better assess the current environment in which the firm operates.
d. better measure and create value for the shareholders.

Answer 1

Answer is a. better assess future financing requirements.

cash management is an important aspect of financial management. by understanding day to day cash management, a manager can better assess future financing requirements. by doing this a manager can save finance charges.

option b is part of assessing future financing requirements because raising long-term funds from capital markets is a source of financing.

option c and d are other aspects of financial management.