POA Theories C16

4. An importance of inventory management is to prevent an __________ situation which leads to loss of sales
6. Efficiency of inventory management can be improved by __________ selling price for slow-moving goods
7. The business must have enough cash to pay for current liability so that suppliers will be willing to __________ goods or services on credit
11. Efficiency of inventory management can be improved by providing __________ discounts to encourage customers to buy in bulk
14. Liquidity is the ability of a business to convert its current assets into __________ to pay its current liabilities
15. Profitability can be improved by renting out excess space to get __________
17. Efficiency of inventory management measures the ability of a business to manage its inventory to meet __________
19. Profitability can be improved by reducing use of electrical appliances to decrease __________

1. The business must have enough cash to pay for current liability in order to ensure __________ of daily business operation
2. To attract shareholders or investors to __________ more in the business
3. Liquidity can be improved by obtaining L__-T___B____
5. The business must have enough cash to pay for current liability so that banks will be willing to lend money to the business
8. Efficiency of inventory management can be improved by attracting more customers through __________
9. Another importance of profitability is to __________ business pperation in the long run
10. Liquidity can be improved by obtaining cash __________ from owner or shareholders
12. Profitability is the ability of a business to generate __________ to cover its expenses
13. Another importance of inventory management is to prevent higher __________ due to buying too many goods
16. Another importance of inventory management is to prevent risk of goods becoming __________ due to buying too many goods
18. One importance of profitability is to reward and retain employees