What is the primary use of a brokerage account for businesses?

A brokerage account serves as a crucial tool for businesses when it comes to investing and managing their capital efficiently. The primary use of a brokerage account is to deposit funds and execute orders for various investments. This allows businesses to purchase stocks, bonds, mutual funds, and other securities, enabling them to grow their assets over time.

Investing through a brokerage account provides a platform where businesses can not only execute trades but also monitor market conditions, which is essential for making informed investment decisions. This strategic approach to managing surplus cash can potentially lead to higher returns compared to simply holding cash in a traditional bank account, which generally offers lower interest rates.

Other options, while relevant to business finance, do not specifically relate to the primary function of a brokerage account. For example, holding cash reserves for operational expenses relates more to liquidity management, while storing physical assets concerns inventory management. Managing short-term liabilities pertains to debt management and obligations, which are not the focus of what a brokerage account is primarily designed for. Thus, option B accurately captures the key purpose of a brokerage account for businesses.