Which of the Following Statements Relating to Inventory Levels and Finance

question 30

Multiple Choice

Which of the following statements relating to inventory levels and finance is correct?

• A)Money tied up in inventories is an opportunity cost.
• B)Businesses have to balance money invested in inventory to ensure no missed sales whilst not over-investing.
• C)Overstocked businesses may find it is difficult to sell the inventory due to poor buying decisions.
• D)All of the above statements are correct.

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Definitions:

U.S.-Canada Border

The international boundary between the United States and Canada, recognized as the longest undefended border in the world, spanning various terrains and facilitating cross-border movement.

Smuggling

The illegal trade or transportation of goods, people, or contraband across borders, bypassing legal procedures or avoiding taxes and regulations.

White Americans

Individuals residing in the United States who identify as having origins in any of the original peoples of Europe, the Middle East, or North Africa.

Tecumseh

A Native American leader of the Shawnee and a large tribal confederacy which opposed the United States during Tecumseh's War and the War of 1812.