2. Preventive motivation: holding cash to meet the cash demand in an emergency.
3. Speculative motivation: Holding cash is to seize market investment opportunities and get greater returns.
Extended data:
Social background of enterprise cash management;
As we all know, enterprises aim at profit. At present, many enterprises deliberately pursue high returns and high profits. So there is often such a wrong idea that the high value of enterprise profit display is the performance of effective management. Therefore, the liquidity that should be reflected in profits has been largely ignored.
As a fund manager of an enterprise, you should be able to comprehensively and correctly define the difference between cash and profit. Profitability does not mean that the enterprise itself has enough liquidity. Liquidity, also known as cash flow, plays an important role in the healthy development of enterprises.
Baidu Encyclopedia-Enterprise Cash Management