Q. The inventory–sales ratio is most likely to be rising:
- as a contraction unfolds.
- partially into a recovery.
- near the top of an economic cycle.
The answer given in candidate resources is C while I feel the answer should be A please explain.
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Ans is C because at the peak of the business cycle sales will start decreasing and inventory would start to accumulate.
Jaise tumhara factory hai aur tum raw materials rakhte ho ek estimated production ke hisab se aur tum dekh rahe ho ki inventory bohot bach rha hai achanak se to aisa isiliye hoga kyuki sales kam ho rha hai jo ki peak pe hota hai
Alright thanks