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    Financial Management Principles
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    Exam 2: Essential Concepts in Finance: Part A
  5. Question
    If the Inventory Turnover Ratio Is Very Low Relative to Industry
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If the Inventory Turnover Ratio Is Very Low Relative to Industry

Question 2

Question 2

Multiple Choice

If the inventory turnover ratio is very low relative to industry averages:


A) the firm may have too many items that the customers probably do not want.
B) the firm has good total assets management practices.
C) the firm has too low a level of inventory.
D) the firm may be losing sales if its inventory is too low.

Correct Answer:

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