Negative Reaction to Netflix's Change of Billing Plans Is an Example

question 58

Multiple Choice

Negative reaction to Netflix's change of billing plans is an example of

• A) liquidity risk.
• B) event risk.
• C) business risk.
• D) purchasing power risk.

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Definitions:

Average Inventory

An accounting metric that estimates the value or quantity of a company's inventory over a specified time period.

Carrying Cost

Carrying cost refers to the total cost of holding inventory, including storage, insurance, taxes, opportunity costs, and depreciation.

Order Cost

The administrative and logistical expenses associated with making and processing an order for goods or services.

Economic Order Quantity

An inventory management formula that determines the ideal order size to minimize the costs of holding and ordering inventory.