Scarcity

question 71

Multiple Choice

Scarcity:

• A) does not exist.
• B) implies that people must make a choice.
• C) exists only in developed countries.
• D) exists only in developing countries.

---

Definitions:

Inventory Management

Inventory management involves overseeing and controlling the ordering, storing, and use of components that a company will use in the production of the items it will sell as well as the managing of quantities of finished products.

Collection Policy

Procedures followed by a firm in collecting accounts receivable.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Credit Extension

The practice of providing borrowers additional time to pay off existing debts, often involving modified repayment terms or agreements.