Which of the following is a reason why small business managers tend to overbuy inventory?
A) They forecast greater demand than is realistic.
B) Vendors insist that prices may be going down.
C) They don't want to disappoint vendors and suppliers.
D) Maximizing inventory is a good way to decrease taxes.

Question

Quizplus · Accepted Answer

Small business managers tend to overestimate the demand for their products and assume that they will sell more than they actually do. This leads to them overbuying inventory, which can result in excess costs and decreased profitability.

Which of the Following Is a Reason Why Small Business