A Danger of an Excessive Investment in Inventory for the Small

question 44

Multiple Choice

A danger of an excessive investment in inventory for the small business is:

• A)excessive inventory taxes by local and state government.
• B)minimizing reordering costs.
• C)creating too quick a turnover of inventory.
• D)tying up an excessive amount of the firm's capital.

---

Definitions:

Consumption

Families engaging in the use of products and services.

Income

Sums of money attained, usually on a fixed schedule, from work or investment undertakings.

Interest Rate

The proportion at which principal loaned money is repaid with interest to the lender over time, usually as an annual rate.

Utility Function

A mathematical representation that ranks individuals' or entities' preferences over a set of goods or outcomes.