A Stockout Can Potentially Be Expensive Because Of

question 23

Multiple Choice

A stockout can potentially be expensive because of:

• A) lost customers
• B) lost sales
• C) back- order costs
• D) all of the above

---

Definitions:

Agency Relationship

A fiduciary relationship in which one party (the agent) agrees to act on behalf of another party (the principal).

Ratify

To formally approve or confirm, often used in the context of treaties, agreements, or legislation.

Commission

A fee paid to an agent or employee for completing a task or making a sale, which is often a percentage of the sale's total value.

Legal Consequences

are the outcomes that follow from the application of the law, such as penalties for breaking the law or the results of legal judgments.