McDonald's Corporation usually has a cash balance that represents about 5% of its total assets. Microsoft Corporation,

Question:

McDonald's Corporation usually has a cash balance that represents about 5% of its total assets. Microsoft Corporation, on the other hand, has a cash balance that is roughly 40% of total assets. Why do you think Microsoft maintains a higher amount of cash?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...