FINANCE 3

Inventory refers to goods available for sale or raw materials used to produce goods available for sale. Hence, managing inventory is a concern to most firms to make sure that their operation runs smoothly. Which of the following best describes why inventory management is highly important to top management of a firm? (1 Mark) Answer It provides margin of safety against any technical insolvency It affects the riskiness of a firm It can generate high earnings for a firm's shareholders It helps in planning for any borrowing needs of a firm 2014-2021 Chat With Us