Why Do Small Business Managers Tend to Overbuy Inventory

question 82

Multiple Choice

Why do small business managers tend to overbuy inventory?

• A)They forecast greater demand than is realistic
• B)Vendor's insist that prices may be going down.
• C)They don't want to disappoint vendors and suppliers.
• D)Maximizing inventory is a good way to decrease taxes.

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Definitions:

Diathesis-Stress Model

Model that asserts that only when a diathesis or vulnerability interacts with a stress or trigger will a disorder emerge.

Vulnerability

The state in which there is a risk of encountering harm or assault, emotionally or physically.

Social Trigger

An environmental or interpersonal stimulus that influences one's emotional state or behavior.

Reuptake

A process in neurotransmission where neurotransmitters released into the synaptic gap are reabsorbed back into the pre-synaptic neuron, affecting the intensity and duration of neurotransmission.