A balance allows the firm some flexibility in taking advantage of favourable purchases, rather than operating lines of credit. Consider the case of Jamison: Jamison is a manufacturing company. In the past, Jamison Enterprises has suffered from poor cash management. In particular, situations arose where the firm did not have the necessary cash on hand to pay its suppliers, and it faced serious penalties for late payment as a result. The firm was not in financial distress; it merely hadn't managed its cash flow properly to have the required funds on hand. What type of cash balance should Jamison pay more attention to in order to avoid these problems? Speculative Transactions Compensating Precautionary