Inventory requires considerable investment for most manufacturers, wholesalers, and retailers. This problem is complicated by the fact that most goods are manufactured four to nine months before they are actually sold to consumers. Manufacturers that engage in this type of speculative production often need short-term financing to do all of the following except
A) buy materials.
B) pay wages.
C) pay rent.
D) buy equipment.
E) buy supplies.

Question

Quizplus · Accepted Answer

The passage mentions that manufacturers need short-term financing to buy materials, pay wages, pay rent, and buy supplies. However, it does not mention buying equipment as a reason for needing short-term financing.

Inventory Requires Considerable Investment for Most Manufacturers, Wholesalers, and Retailers