Which of the Following Statements Is FALSE

question 2

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:

Binge-drinking Rate

The proportion of individuals in a population who consume an excessive amount of alcohol in a short period of time.

Motor Coordination

Involves the ability to execute smooth, precise, and controlled physical movements, integrating the actions of muscles and limbs.

Memory

The faculty by which the mind stores and remembers information, enabling learning and consciousness.

Marijuana

A substance obtained from the Cannabis plant that affects the mind and is used for health-related or recreational reasons.