Question

"Firms with highly volatile and perishable inventory should assume relatively low levels of risk.

A True
B False"

Answer 1

Firms with highly volatile and perishable inventory should assume relatively low levels of risk.

Step-by-step explanation:

Firms with highly volatile and perishable inventory should assume relatively low levels of risk. This is because when inventory is highly volatile and perishable, there is a higher chance of losing value or not being able to sell it before it expires. Therefore, it is prudent for these firms to take fewer risks to protect their inventory and financial stability.