A Firm That Is Efficient in Inventory Management Will Have

question 42

Multiple Choice

A firm that is efficient in inventory management will have

• A) a high inventory turnover ratio and a low days sales in inventory ratio.
• B) a low inventory turnover ratio and a low days sales in inventory ratio.
• C) a high inventory turnover ratio and a high days sales in inventory ratio.
• D) a low inventory turnover ratio and a high days sales in inventory ratio.

---

Definitions:

Noise Trader

A trader whose trades are not based on information or meaningful financial analysis.

Day Trading

The practice of buying and selling financial instruments within the same trading day, taking advantage of small price movements.

Arbitrageur

An investor who attempts to profit from price inefficiencies in different markets by simultaneously buying and selling equivalent assets.