Retailers Often Hold a Fixed Level of Safety Stock to Make

question 105

True/False

Retailers often hold a fixed level of safety stock to make sure they will be able to fulfil customers' needs,when they are uncertain about demand for their products or availability of their products from the suppliers.
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Definitions:

Legal Purposes

Activities or actions that are undertaken in accordance with law and designed to effectuate legal ends.

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its business or to pay debt.

Net Income

The final income of a firm following the deduction of all expenditures, taxes, and interest from the gross revenue.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.