Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A) Firms may hold inventory because factors such as seasonality in demand mean that customer purchases do not perfectly match the most efficient production cycle.
• B) Inventory helps minimize the risk that the firm will not be able to obtain an input it needs for production.
• C) If a firm holds too much inventory, stock-outs, the situation when a firm runs out of product, may occur, leading to lost sales.
• D) Because excessive inventory uses cash, efficient management of inventory increases firm value.

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Definitions:

North America

A continent located in the Northern Hemisphere, largely bordered by the Atlantic, Pacific, and Arctic Oceans, including countries like Canada, the United States, and Mexico.

Japan

An island nation in East Asia, known for its rich culture, technological advancements, and historical significance.

Norway

A country in Northern Europe known for its high standard of living, robust welfare state, and stunning natural landscapes.

Social Problems

Issues within a society that affect a significant number of its members and are considered undesirable, requiring management or resolution.