A danger of an excessive investment in inventory for the small business is:

Question

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Excessive investment in inventory means that a significant amount of capital is tied up in the inventory, which may limit the business's ability to invest in other areas and can cause cash flow problems. This can be particularly problematic for small businesses with limited resources. Additionally, holding onto excess inventory can lead to increased storage costs and potential product obsolescence. Thus, it is important for small businesses to strike a balance between having enough inventory to meet demand and not tying up too much capital in inventory.

A Danger of an Excessive Investment in Inventory for the Small