Why Might Inventories Increase in Market Value Subsequent to Acquisition

question 111

Multiple Choice

Why might inventories increase in market value subsequent to acquisition?

• A)a shortage of a key raw material
• B)a competitor may introduce a technologically superior product
• C)a product may include materials found to contain a health hazard
• D)the introduction of a lower-cost raw material
• E)all of the above

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Definitions:

Corporate Bond

A debt security issued by a corporation and sold to investors, paying fixed interest over its lifetime and repaying the principal at the bond’s maturity date.

Tax-Exempt

Financial earnings or transactions that are free from taxation.

Tax Bracket

The range of incomes taxed at particular rates, which increases progressively with higher earnings.

Corporate Bond

A type of debt security issued by corporations to raise capital, with the promise to repay the principal along with interest on specified dates.