3
QuizMultiple Choice

Study Guide and Quiz

Question 3 • S25 Introduction to Business A (Theisen)

Money that your company has in the bank in case of unexpected financial needs or in case sales slow down is called ____________.

Answer
A
An asset fund
B
A cash reserve
C
Equity
D
Insurance

Explanation

Money kept available in a bank to cover unexpected expenses or a slowdown in sales is called a cash reserve. It helps a company pay its bills when income is temporarily lower than expected. The correct choice is “A cash reserve.”

AI-written and checked against the verified answer.

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