Spontaneous Sources of Financing May Be Either Short-Term or Long-Term

question 143

True/False

Spontaneous sources of financing may be either short-term or long-term.

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Definitions:

Safety Stock

Extra inventory maintained to guard against stockouts due to variance in supply or demand.

Inventory Level

The quantity of goods and materials on hand and available for sale or use by a business at any given time.

Inventory Carrying Costs

Inventory carrying costs refer to the total expenses associated with holding and storing unsold goods, including warehousing, insurance, depreciation, and opportunity costs.

Fiscal Policy

Government policies related to taxation and spending aimed at influencing a country's economy.