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:

Coalition

An alliance among individuals or groups, especially during a negotiation or in politics, to achieve a common goal.

Bedfellows

Unlikely or surprising partners united by common interests or objectives.

Negotiator

A negotiator is someone who is involved in discussions aimed at reaching an agreement or resolving a dispute, possessing skills in communication, persuasion, and strategy.

Trust

A firm belief in the reliability, truth, ability, or strength of someone or something.