A firm run by a rational entrepreneur would want to hold inventories. True False

1 answer:

4 0

True
Because having inventories would mean the following:
1. Holding Inventory avoids loss of sales
2. Holding Inventory gains quantity discount
3. Holding Inventory reduces order cost 4. Achieve efficient production runs by holding inventory
5. Holding Inventory reduces risk of production shortages

You might be interested in

The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Acc

dmitriy555 [2]

Answer:

The first closing entry transfers credit balances in revenue ( and gain ) accounts to the income summary accounts.

Dec 31 Fees Earned $56,000 Dr

Income Summary $56,000 Cr

We bring account credit balances to zero by debiting them. The entry closes revenue accounts and leaves them with zero balances. The accounts are now ready to record revenues when they occur in the next period.

4 0

3 years ago

In just a few short weeks, Jon would arrive back in the states after a semester abroad. He was already in a temp agency's databa

sergij07 [2.7K]

Answer:

contingent worker

Explanation:

A contingent worker is a person that is a non-permanent worker, that is outsourced and has skills that are necessary to perform the job and works for a specific project. These workers are not employees of the company which means that they don't receive benefits. According to this, the answer is that Jon will again try to hire on as a contingent worker because he would be an outsourced worker that is not permanent as he would work during the summer months, he won't get benefits and he has the skills that are required for the position.

5 0

4 years ago

Attributes of a company's competitive advantage, including land, capital, technological knowhow, and physical infrastructure, ar

lions [1.4K]

Answer: Factor endowments

Explanation:

Factor endowment is amount of land, capital, labor, and entrepreneurship that is possessed by a country and which the country can use for production purpose.

Therefore, Attributes of a company's competitive advantage, including land, capital, technological knowhow, and physical infrastructure, are factor endowments.

8 0

3 years ago

The income section of a budget will include your

Amiraneli [1.4K]

Answer:

savings

Explanation:

8 0

3 years ago

Read 2 more answers

Congratulations! You have been appointed an economic policy adviser to the United States. You are told that the economy is signi

Nostrana [21]

Answer:

Price level may increase or decrease and output decreases.

Explanation:

The price level is determinated bu the money supply and demand. A single price, in this case oil, cannot determinate prices or we end up in a loop.

So this is insufficient information to determinate the price level.

While the income decrease at a worldwide level will make the output of the economy even lower.

4 0

3 years ago