Every time an entrepreneur spends cash, she or he takes a risk. If one buys ________, then the entrepreneur faces the risk of storage costs and pilfering.

Question

Quizplus · Accepted Answer

Inventory is the only option that involves the risk of storage costs and pilfering. A computer for the chief financial officer would not face these risks, and capital assets are generally not subject to as much risk of theft or damage as inventory. Therefore, the best choice is C - inventory.

Every Time an Entrepreneur Spends Cash, She or He Takes