If a Firm Decreases the Level of Inventory It Carries,the

question 62

Multiple Choice

If a firm decreases the level of inventory it carries,the order costs will ________ and the carrying costs will ________.

• A)decrease,decrease
• B)increase,increase
• C)decrease,increase
• D)increase,decrease
• E)remain unchanged,decrease

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Definitions:

Trade Association

A trade association is an organization founded and funded by businesses that operate in a specific industry, designed to promote common interests, provide resources, and advocate for policies favorable to the industry.

Franchising

A business model that allows one party (the franchisee) to use the trademark, systems, and business model of another party (the franchisor) in exchange for a fee and ongoing royalties.

Legalese

A specialized language filled with legal terminology and complexities, often used in legal documents and communications.

Disclosure Statements

Documents that provide essential information about a business or financial product, legally required to be shared with potential investors or customers.