When Prices Are Rising at a Rate of 2 Percent,the

question 74

Multiple Choice

When prices are rising at a rate of 2 percent,the cost of products and services would double in ______ years.

• A)3
• B)6
• C)18
• D)36
• E)72

---

Definitions:

Merchandising Company

A business that purchases finished goods for resale, making a profit on the difference between the buying and selling prices.

Service Company

A business that provides intangible products (services) to consumers, as opposed to selling physical goods.

Inventory Shrinkage

The loss of products between purchase and sale due to theft, damage, or errors, resulting in lower inventory levels than recorded.

Managers

Individuals responsible for controlling or administering all or part of a company or similar organization.