Busıness Fınance I Deneme Sınavı Sorusu #856255

_______________ assumes that the cashflow of a company has a stochastic structure, as different amounts of cash payments are made on different points of time.


Baumol’s economic order quantity model

Miller-Orr model

Cash flows management

Cash position report

Cash/Bank reconciliation


Yanıt Açıklaması:

Unlike Baumol, Miller and Orr model (1966) assumes that the cashflow of a company has a stochastic structure, as different amounts of cash payments are made on different points of time. It is assumed that the movements in cash balance occur randomly. Miller and Orr also suggest that there exist control limits, which sets control points for time and size of transfers between Investment Account and Cash Accounts.

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