Firms Keep Supplies of Inventory for Which of the Following

question 102

Multiple Choice

Firms keep supplies of inventory for which of the following reasons?

• A) To maintain dependence of operations
• B) To provide a feeling of security for the workforce
• C) To meet variation in product demand
• D) To hedge against wage increases
• E) In case the supplier changes the design

---

Definitions:

Perception

The process by which individuals interpret and make sense of sensory information to understand their environment.

Legitimate Power

Authority that is recognized and accepted by others within an organization due to a formal position or role.

Formal Authority

The power granted to an individual or organization by virtue of position or status, enabling them to enforce rules and make decisions.

Prerogatives

Special rights or privileges exclusively reserved for a particular person, group, or class.