Advantages and disadvantages of having a large cash balance.
Prior to the financial recession in the late 2000s, some companies built up significant cash balances. Since that time some companies have continued to increase their cash and liquid investment balances and a discussion followed over the value of accumulating large cash balances. Research the topic and answer the following questions in your write-up. Use the U.S. Securities and Exchange Commission Links to an external site.website and the University of Arizona Global Campus Library to find resources to support your statements.
In your paper,
Analyze the advantages and disadvantages of having a large cash balance.
Identify two companies with sizable amounts of cash and liquid investments on their balance sheets.
Explain why a company would continue to increase their cash and liquid investment balances.