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Chapter 3: Q3DQ (page 218)

Why would a financial manager want to slow down disbursements?

Short Answer

Expert verified

The finance manager slows down the disbursements to increase the cash balance available with the organization.

Step by step solution

01

Meaning of financial management

The process of managing the long-term and short-term finance of an organization is called financial management. The finance manager analyses the different sources before determining the best alternative for the organization.

02

The reason for the slow down of disbursements

The finance manager slow-down the disbursement process as it helps in increasing the cash balance available with an organization. The increase in the cash balance provides the organization with extra funds to invest and generate investment income.

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