Which of the following is a possible consequence of a business having too high a level of inventory?

Question

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If a business has too high a level of inventory, it may not be able to sell it quickly enough before it reaches the end of its shelf life, resulting in spoilage or obsolescence. This can lead to financial losses for the business. Choices A and B are incorrect as having too high a level of inventory would actually lead to higher trade payables and less cash being released into the working capital cycle. Choice C may or may not be true, but it is not a direct consequence of having too high a level of inventory.

Which of the Following Is a Possible Consequence of a Business