Why Do Companies Try to Keep Inventory Low

question 74

Multiple Choice

Why do companies try to keep inventory low?

• A) It keeps production stable.
• B) Money that is not tied up with inventory can be used for other purposes.
• C) The lower the inventory, the more flexibility the company has.
• D) It keeps the employment in check.
• E) It keeps the raw materials market balanced.

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Definitions:

Axon Terminal

The endpoint of an axon where neurotransmitters are released to signal the next neuron.

Synaptic Vesicles

Small sacs within presynaptic nerve terminals that store neurotransmitters, which are released into the synaptic cleft during neurotransmission.

Action Potential

A brief change in electrical voltage that occurs between the inside and the outside of an axon when a neuron is stimulated; it serves to produce an electrical impulse.

Synaptic Cleft

The gap between two neurons where neurotransmitters are released to transmit signals.