The essay would be heavily focused on why do corporations/companies hold money in cash. Theories by economists should support the following argument. Avoid explaining what companies are and what do they mean and explore on why companies do so referring back to studies that have explored the same criteria.
Some relevant points to be mentioned:
1- How do companies get affected when they do not have cash in hand (such as rise of crises and other relevant aspects).
2- How throughout the past centuries companies adapted to the risk within the market and increased their cash in hand.
3- How do companies actually reserve cash ?
4- Reasons behind companies reserving cash. (in corresponding to all the previous points)
Those are some points that would bring the focus of the topic into perspective. Elaborate on other significant points from your perspective relevant to the following topic.
Make sure to avoid extensive “definition” of what is what and more on how it is and how it is done, referring back to resources (academic articles in general and trusted resources) to support the following.
This is not an essay in regard to explain what a company is, or what it does. The main focus is on the aspects that drive companies towards reserving cash. An introduction with hypothesis is required, including a conclusion. Hypothesis should be stated in an adequete way to make the reader understand the arguments made.
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