One Characteristic of Mid-Cap Stocks Is That They

question 46

Multiple Choice

One characteristic of mid-cap stocks is that they

• A) are generally new firms with high growth potential.
• B) tend to be highly volatile.
• C) are fairly good-sized companies that offer attractive return opportunities.
• D) are traded primarily through pink sheet bids.

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Definitions:

Service Level

A measure of the performance of a service system, often defined in terms of responsiveness to customer needs and reliability.

Ordering Costs

The expenses associated with the process of requisitioning, purchasing, and receiving goods and services; includes costs of paperwork, communication, and inspections.

Maintaining Inventory

Activities and strategies involved in keeping an appropriate level of stock to meet demand without incurring excessive holding costs or stockouts.

Shrinkage

The loss of inventory that can result from theft, damage, or errors in the inventory management process.