Which of the Following Is True About Inventory Management for the Small

question 105

Multiple Choice

Which of the following is true about inventory management for the small business owner?

• A)Most small business owners have turned to technology and computer spreadsheets to achieve maximum efficiency in managing it.
• B)Inventory is the largest capital investment for most businesses, but few owners use any formal means for managing it.
• C)Inventory is generally highly liquid and can be easily mortgaged to a bank for immediate cash, if needed.
• D)Inventory yields a return of about 25 percent for manufacturing firms but nothing for service companies.