Making investments in the future All of the other answers re

Making investments in the future. All of the other answers represent examples of restricted cash. QUESTION 3 company might hold a large amount of cash relative to noncash assets for which of the following reasons? O Part of its operations includes low-tax foreign jurisdictions O Operating risks are high. O Dividends are not typically paid to shareholders. 0 All of the other answers represent reasons for large cash holdings.

Solution

Answer is \"Operating risks are high\"

Company hold a large amount of cash for the purpose of precaution. Cash are required to meet day to day operating expenses which are incurred in cash. Large amount of cash are required in order to maintain liquidity. Low amount of cash might be risky for the company to manage operating activities.So, large amount of cash are required to mitigate operating risks.