Large inventories can be the best classified as?
Correct answer: D. potential Weaknesses
- A. potential opportunities
- B. potential Threats
- C. potential Strengths
- D. potential Weaknesses
Explanation
Large inventories tie up cash, increase storage and obsolescence costs, and may indicate inefficient operations, so they are normally treated as a weakness in SWOT analysis. They could be an opportunity only in a special market situation, which the question does not specify.
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About Principles of Management
Management principles explain how organisations set objectives and coordinate people and resources to achieve them. Coverage includes planning, organising, staffing, directing, coordinating and controlling, along with authority, responsibility, delegation, span of control and the levels of management. These functions are related but not interchangeable, especially planning and controlling.
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