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If a company stockpiles a huge inventory of raw materials in anticipation of rising prices, it will never lose money and be able to beat

If a company stockpiles a huge inventory of raw materials in anticipation of rising prices, it

will never lose money and be able to beat its competition.

is exposed to the risk of falling prices and huge losses on inventory.

is assured of high profits as its cost or raw material will not rise for a while.

will not be exposed to the risk of obsolescence and high storage costs since it will be able to sell its goods quickly in the market.

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