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Unlike long-term forecasting or choosing to expand a company’s fixed assets, cash management requires constant, immediate, and responsive decision-making. There is no opportunity to carefully consider each possibility and wait to further observe trends within the market. Inventory and demand for cash change daily, therefore, the financial manager must be well-versed in the most effective ways to manage the cash a firm has, along with the most efficient ways to obtain cash as needed. This paper will compare and contrast various cash management techniques, as well as compare and contrast the various methods of short-term financing...
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