Question
Explain is the motivation behind holding cash? Explain each of them briefly.
Answer :
Word Count : 1094
________ ____ ______ ____ __________ ________ ____ _______ _________ ________.
_________ ________ ____ _______ __________ ______ _________.
_________ ________ _______ _______ ____.
_____ _________ ______ ______ ______ __________ ___ _______ ___ ________ ___ ___.
_______ ________ __________ ___ ________ __________ _________ ______.
________ __________ __________ _____ ________ _____.
______ __________ ________ _______ ___ _____.
_______ _____ ______ __________ _________ __________.
_________ ________ ___ _______ _______ ____ ____.
________ _________ _____ ______ _________.
______ ________ ___ _________ _____ __________ _____.
___ ___ _____ _____ ______ ___ _____ ______ _____ _____ _____ ________.
________ ______ ______ _________ ________ __________ ___.
___ _____ _________ ________ _________ ___ ____.
__________ _________ ______ _________ _____ _______ _____ _____ ___ ________.
_______ __________ _____ ___ ________ _____ _____ ______ __________.
_____ ______ _______ ________ _______ _____ _____ ______.
________ ___ _______ ______ ______.
_____ _______ ___ _______ ______ _______ ___ _______ ___.
____ _______ _____ _______ _______ _____ _________.
_________ _____ _________ ________ _________ ________.
__________ ______ ___ ______ _________ _____ _______ __________ _______ ___.
_______ __________ _______ _________ _____.
________ __________ __________ _______ _____ ____ ___ _______ ______ ___ ______ _________.
_____ ____ __________ ________ ___ _______ _______ ____ ___.
___ __________ ______ ___ __________.
________ _________ ________ ________ ____ ____ ___ __________ _______ _________.
_______ ______ ____ __________ _______.
________ ________ ____ ____ ________ __________ _________ _________ _______.
_____ _________ _______ _____ _______ ___ __________ ____ ____.
____ ___ ______ ____ _____.
________ __________ ___ _____ ___.
__________ ______ ________ ______ _____ __________ ____.
____ ____ ___ __________ ____ _________.
__________ ____ __________ ____ _________ _________ _______ ___ __________ ____ _____.
___ _______ ___ ________ ______ ______ _______.
_________ _________ ______ ______ ______ __________ __________ ___ _________ __________.
______ _____ __________ __________ ______ _________ __________ _________ ___.
________ ___ _________ ___ ___ ________ ___ _________ ________ ______ _______ ___.
_______ ____ __________ ___ __________ _________.
______ _________ __________ ____ ___ ______ __________ __________ __________ ____.
________ _______ _____ _________ ____ ___ ___ __________ _______ _____ __________.
_____ _____ _____ ______ _________ ______ ____ _______ ___ ________ __________ _______.
________ ____ _______ _________ ________ ___ ____ _______ _____ ____ ____.
________ _________ _____ _______ ____ _________ ___ ____ ____ ______ ____.
______ ________ ______ _________ ______ _____ ________ ________ _____.
____ ___ _________ ______ __________ ________ _____.
_________ ____ ______ __________ _________ __________.
________ ___ ________ ________ ______ _____.
_____ ___ _____ _________ ______ _____ ______ ___ ____.
____ ___ ______ ______ _________ ______ ___ _______.
________ _______ ____ ______ ________ _________ ____ _____ _____ ________ ____.
___ ________ ____ ____ _______ ______ ______ ______ __________ _______ ____ ____.
________ ________ __________ ________ _____ ________ ______ __________ __________ __________ _________.
_______ ______ ___ __________ _______ ___ ___.
___ _____ ___ ____ _______ _______ _________.
______ ___ ___ _____ __________ _______ __________ __________.
_____ _____ ___ ________ ________ _________ _____ ________ _____ ___.
__________ ___ ______ ____ ____ ___ ____.
________ ____ ____ _________ __________.
______ ________ _____ _________ __________ __________ __________ ______ ______ ___ ________.
________ ________ _____ _______ _______ ___ ___ ___ ______.
___ _____ _______ ______ __________ __________ ___.
_________ _____ _______ ______ _________ _________ ________ ______ ___.
_____ _________ _____ __________ _________ ____ _____ _______ _____ ______ __________.
___ ________ ______ __________ _________ ___ __________ __________.
______ _____ ________ ______ ___ __________ ____ ____ _________ ________ _____ _____.
______ ____ ____ _____ _________ ___ ____ ______ ________ _________.
_______ ______ ______ ___ _____ ____ ________ _______ _____ _________ ___ ___.
______ ___ __________ _____ ___ ________ __________ ______ __________ _____ ___ ____.
__________ _________ ____ _________ ___ ____ _________ _________ ______ __________ _____.
_____ ____ ________ ____ ____ _________.
_________ _______ ________ ____ __________ _______ ________ ______ __________ ________ ____.
________ _____ ___ ________ ___ __________ ___ __________ ___ ___ ____.
______ _______ _______ ___ ___ _________ ________ __________ _______ ______ ____ ___.
_________ _____ ________ ______ _________ ___ ______ ______ ___.
________ ________ _______ _________ ___ _________ ________ ________ _________ ______ ______ _____.
__________ ______ ______ _____ ____ __________ ______ _____ ______ ___.
________ _________ _________ ________ _______ ____ ___.
________ __________ ________ ____ ___ _________ _____ ______ __________ _________ ______ ________.
__________ _______ ______ ________ ___ ___ ____ ____.
____ _______ ____ ____ _________ ________ _______ ______ _____ _____ ___.
____ ___ _______ ___ ____ ______ __________ _________ ____ ______.
____ _____ _______ ______ _____ _____ ___ ________ ______ ______.
_______ ______ ___ _______ ________.
_________ _________ _________ ________ _____.
___ ______ _________ _________ ____ __________ _______ _________ ___.
______ _________ _____ ___ _________ ________.
_____ ____ ____ _______ __________ ________ ____ _______.
________ ____ ________ _____ _______ _______ __________.
________ ___ ________ _______ ______ _____ _____ ___ __________ _________ ________.
_______.
Skip in 10
In the context of tourism management, understanding the motivation behind holding cash is essential for effective financial planning and liquidity management. Cash management plays a vital role for tourism businesses, such as hotels, travel agencies, tour operators, and event organizers, because it directly affects the ability to meet immediate expenses, respond to unforeseen contingencies, and take advantage of strategic opportunities. Economists have identified several motivations behind holding cash, which can be broadly classified into three primary categories: transaction motive, precautionary motive, and speculative motive. Each of these motives has specific implications for tourism managers. The transaction motive refers to holding cash to meet routine, day-to-day operational expenses. Tourism businesses often face regular expenditures such as salaries for staff, utility bills, vendor payments, and operational supplies. For instance, a hotel manager needs to ensure there is enough cash to pay housekeeping staff, purchase food and beverages for the restaurant, and settle utility bills on time. The transaction motive emphasizes that cash is necessary to facilitate smooth operations without interruptions. In tourism, where customer satisfaction depends heavily on timely service delivery, the availability of sufficient cash to meet everyday expenses is crucial. Managers must estimate the expected cash requirements based on historical data, seasonal trends, and anticipated bookings to maintain liquidity for operational transactions. The precautionary motive involves holding cash to safeguard against unexpected or uncertain contingencies. Tourism is a sector highly sensitive to sudden changes, such as natural disasters, political unrest, pandemics, or unexpected cancellations. For example, a tour operator may face sudden refund demands from clients due to a flight cancellation or a hotel might need to repair damaged facilities unexpectedly. Holding cash for precautionary purposes ensures that the business can cover unforeseen liabilities without resorting to expensive borrowing or jeopardizing service quality. Tourism managers often maintain a buffer of cash or a contingency fund to
__________ ________ _____ _____ __________ __________.________ ____ ______ ____ __________ ________ ____ _______ _________ ________.
_________ ________ ____ _______ __________ ______ _________.
_________ ________ _______ _______ ____.
_____ _________ ______ ______ ______ __________ ___ _______ ___ ________ ___ ___.
_______ ________ __________ ___ ________ __________ _________ ______.
________ __________ __________ _____ ________ _____.
______ __________ ________ _______ ___ _____.
_______ _____ ______ __________ _________ __________.
_________ ________ ___ _______ _______ ____ ____.
________ _________ _____ ______ _________.
______ ________ ___ _________ _____ __________ _____.
___ ___ _____ _____ ______ ___ _____ ______ _____ _____ _____ ________.
________ ______ ______ _________ ________ __________ ___.
___ _____ _________ ________ _________ ___ ____.
__________ _________ ______ _________ _____ _______ _____ _____ ___ ________.
_______ __________ _____ ___ ________ _____ _____ ______ __________.
_____ ______ _______ ________ _______ _____ _____ ______.
________ ___ _______ ______ ______.
_____ _______ ___ _______ ______ _______ ___ _______ ___.
____ _______ _____ _______ _______ _____ _________.
_________ _____ _________ ________ _________ ________.
__________ ______ ___ ______ _________ _____ _______ __________ _______ ___.
_______ __________ _______ _________ _____.
________ __________ __________ _______ _____ ____ ___ _______ ______ ___ ______ _________.
_____ ____ __________ ________ ___ _______ _______ ____ ___.
___ __________ ______ ___ __________.
________ _________ ________ ________ ____ ____ ___ __________ _______ _________.
_______ ______ ____ __________ _______.
________ ________ ____ ____ ________ __________ _________ _________ _______.
_____ _________ _______ _____ _______ ___ __________ ____ ____.
____ ___ ______ ____ _____.
________ __________ ___ _____ ___.
__________ ______ ________ ______ _____ __________ ____.
____ ____ ___ __________ ____ _________.
__________ ____ __________ ____ _________ _________ _______ ___ __________ ____ _____.
___ _______ ___ ________ ______ ______ _______.
_________ _________ ______ ______ ______ __________ __________ ___ _________ __________.
______ _____ __________ __________ ______ _________ __________ _________ ___.
________ ___ _________ ___ ___ ________ ___ _________ ________ ______ _______ ___.
_______ ____ __________ ___ __________ _________.
______ _________ __________ ____ ___ ______ __________ __________ __________ ____.
________ _______ _____ _________ ____ ___ ___ __________ _______ _____ __________.
_____ _____ _____ ______ _________ ______ ____ _______ ___ ________ __________ _______.
________ ____ _______ _________ ________ ___ ____ _______ _____ ____ ____.
________ _________ _____ _______ ____ _________ ___ ____ ____ ______ ____.
______ ________ ______ _________ ______ _____ ________ ________ _____.
____ ___ _________ ______ __________ ________ _____.
_________ ____ ______ __________ _________ __________.
________ ___ ________ ________ ______ _____.
_____ ___ _____ _________ ______ _____ ______ ___ ____.
____ ___ ______ ______ _________ ______ ___ _______.
________ _______ ____ ______ ________ _________ ____ _____ _____ ________ ____.
___ ________ ____ ____ _______ ______ ______ ______ __________ _______ ____ ____.
________ ________ __________ ________ _____ ________ ______ __________ __________ __________ _________.
_______ ______ ___ __________ _______ ___ ___.
___ _____ ___ ____ _______ _______ _________.
______ ___ ___ _____ __________ _______ __________ __________.
_____ _____ ___ ________ ________ _________ _____ ________ _____ ___.
__________ ___ ______ ____ ____ ___ ____.
________ ____ ____ _________ __________.
______ ________ _____ _________ __________ __________ __________ ______ ______ ___ ________.
________ ________ _____ _______ _______ ___ ___ ___ ______.
___ _____ _______ ______ __________ __________ ___.
_________ _____ _______ ______ _________ _________ ________ ______ ___.
_____ _________ _____ __________ _________ ____ _____ _______ _____ ______ __________.
___ ________ ______ __________ _________ ___ __________ __________.
______ _____ ________ ______ ___ __________ ____ ____ _________ ________ _____ _____.
______ ____ ____ _____ _________ ___ ____ ______ ________ _________.
_______ ______ ______ ___ _____ ____ ________ _______ _____ _________ ___ ___.
______ ___ __________ _____ ___ ________ __________ ______ __________ _____ ___ ____.
__________ _________ ____ _________ ___ ____ _________ _________ ______ __________ _____.
_____ ____ ________ ____ ____ _________.
_________ _______ ________ ____ __________ _______ ________ ______ __________ ________ ____.
________ _____ ___ ________ ___ __________ ___ __________ ___ ___ ____.
______ _______ _______ ___ ___ _________ ________ __________ _______ ______ ____ ___.
_________ _____ ________ ______ _________ ___ ______ ______ ___.
________ ________ _______ _________ ___ _________ ________ ________ _________ ______ ______ _____.
__________ ______ ______ _____ ____ __________ ______ _____ ______ ___.
________ _________ _________ ________ _______ ____ ___.
________ __________ ________ ____ ___ _________ _____ ______ __________ _________ ______ ________.
__________ _______ ______ ________ ___ ___ ____ ____.
____ _______ ____ ____ _________ ________ _______ ______ _____ _____ ___.
____ ___ _______ ___ ____ ______ __________ _________ ____ ______.
____ _____ _______ ______ _____ _____ ___ ________ ______ ______.
_______ ______ ___ _______ ________.
_________ _________ _________ ________ _____.
___ ______ _________ _________ ____ __________ _______ _________ ___.
______ _________ _____ ___ _________ ________.
_____ ____ ____ _______ __________ ________ ____ _______.
________ ____ ________ _____ _______ _______ __________.
________ ___ ________ _______ ______ _____ _____ ___ __________ _________ ________.
_______.
IGNOU ACADEMY
Your IGNOU journey, made easier.
- Solved Assignments
- Study Notes
- Guess Papers
- Question Papers
Continue Reading — It's Free
Sign in with Google to unlock more of this answer.
✓ Free access
✓ Unlock up to 60% of the answer
✓ No payment required
✓ Unlock up to 60% of the answer
✓ No payment required
Quick Google sign-in. No separate registration form.