Which of the Following Is Not a Reason to Carry

question 76

Multiple Choice

Which of the following is not a reason to carry inventory?

• A) To provide a safeguard for variation in raw material delivery time
• B) To take advantage of economic purchase-order size
• C) To maintain independence of operations
• D) To meet variation in product demand
• E) To keep the stock out of the hands of competitors

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Definitions:

Securities Exchange Act of 1934

A U.S. law governing the secondary trading of securities (stocks, bonds, and debentures) to protect investors against malpractice.

Scienter

Knowledge of wrongdoing or fraudulent intent, particularly in legal contexts involving deception.

Section 11

Often refers to a specific provision in a legal document or piece of legislation; the exact meaning depends on the context.

Securities Act of 1933

A U.S. legislation enacted as a result of the stock market crash of 1929, requiring that offers and sales of securities are registered, providing investors with truthful information on securities.