Question

32. A low inventory turnover means :
(A) Investment tied up in stocks
(B) Obsolete goods on hand
(C) Adverse impact on liquidity
(D) all of these​

Answer 1

Answer:

A low inventory turnover means-

(A) Investment tied up in stocks

This means that the working capital has been invested in the stock and this  much investment is not needed.

Answer 2

Answer:

The low inventory turnover means (A) Investment tied up in stocks.

Explanation:

• Inventory turnover exists as a financial percentage displaying how many times a business has sold and substituted stock during a given duration.
• A low turnover indicates weak sales and possibly extra stock, also known as overstocking.
• It may suggest an issue with the goods being delivered for sale or be a result of too little trade. An increased percentage means either powerful sales or inadequate inventory.
• In other terms, low inventory turnover indicates  Investment tied up in stocks.

Hence, The correct option is (A) Investment tied up in stocks.