Share This Article:

Economic Definition of business inventories. Defined.

Offline Version: PDF

Term business inventories Definition: Stocks of finished products, intermediate goods, raw materials, and other inputs that businesses have on hand. One big reason to keep inventories is to maintain a continuous stream of production by avoiding any supply shortages. Another big reason is to avoid the loss of sales because finished products are unavailable when a customer is ready, willing, and able to buy.

 

« business cycles | business plan »

Permalink: http://glossary.econguru.com/economic-term/business+inventories

Alphabetical Reference to Over 2,000 Economic Terms