cash-reserves

Vocabulary Word

Definition

'Cash reserves' is the money a company or person has saved for emergencies, unexpected costs, or future investments. It's like a safety net knowing you can cover costs if needed.

Examples in Different Contexts

In corporate strategy, 'cash reserves' are funds a company keeps on hand to cover future expenses or investments. A CEO might emphasize, 'Building up our cash reserves is a priority to ensure we can weather economic uncertainties.'

Practice Scenarios

Tech

Scenario:

The new project proposal includes a significant technology upgrade. We need to estimate costs and plan our budget accordingly.

Response:

Innovation is always a part of our culture. We can use the cash reserves for the proposed technology upgrade.

Business

Scenario:

Considering the unpredictability of the current market climate, we need a strong financial backup plan to ensure stability.

Response:

Our cash reserves are significant enough to cushion any financial challenges that we might face due to the changing market conditions.