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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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