Cash is the lifeblood of a business and a business needs to generate enough cash from its activities so that it can meet its expenses and have enough left over to repay investors and grow the business. Cash is the important current asset for the operation of business. It is main component of working capital working capital management. Cash management encompasses how a company manages its operations or business activities, financial investments, and financing activities. A company has to generate adequate cash flow from its business in order to survive, meaning it is able to cover its expenses, repay investors and expand the business. In addition to generating cash from its activities, a business also needs to manage its cash situation so that it holds the right amount of cash to meet its immediate and long-term needs. This paper highlights on all about cash management adequacy and inadequacy.

KEYWORDS: Good Cash Management, Motives, Dimensions, Models.