Which of the Following Is the Major Benefit to a Firm

question 15

Multiple Choice

Which of the following is the major benefit to a firm of using just-in-time inventory management?

• A)It largely eliminates the carrying costs of maintaining a large inventory.
• B)It reduces acquisition costs for placing goods in inventory.
• C)It minimises the total number of orders that the firm places.
• D)It minimises the risk of stock-outs.

---

Definitions:

Duty of Care

A legal obligation to avoid causing harm to others through negligence or recklessness.

Limited Partner

A type of investor in a partnership who has limited liability, meaning they are not personally liable for the debts of the business beyond their investment in the partnership.

General Partner

An entity or individual responsible for the everyday operations of a partnership, fully liable for its obligations and debts.

Liability

The condition of being officially accountable for something, particularly regarding financial debts or legal duties.