Final answer:
A bakery is the business with the highest inventory turnover among the options given because it deals with perishable goods that have to be sold quickly. Automobile manufacturers, art galleries, and piano manufacturers typically have lower turnovers due to the nature and pricing of their products.
Step-by-step explanation:
The inventory turnover ratio is a measure of how quickly a company sells and replaces its stock of goods during a particular period. A high turnover indicates that a company is selling goods very quickly and often corresponds with strong sales. On the other hand, a low turnover suggests that a company may be overstocked or not able to sell its inventory readily.
Among the listed options, a bakery would most likely have the highest inventory turnover. Bakeries deal with perishable goods that have a short shelf life, prompting a faster replenishment cycle. They have to ensure that the baked goods sold are fresh, often producing and selling their products within the same day.
In contrast:
- Automobile manufacturers typically have a lower inventory turnover due to the longer time required to sell vehicles and the higher value per item.
- Art galleries also have a low turnover given the uniqueness and sometimes rare nature of the pieces, which can take considerable time to sell.
- Piano manufacturers make a product that is not purchased frequently, leading to lower turnover of inventory compared to everyday consumer goods.