The correct answer is: C. Over-investment in stock.
A low stock turnover indicates that a company is holding too much inventory. This can be due to a number of factors, such as poor forecasting, inefficient inventory management, or a lack of demand for the company’s products. Over-investment in stock can lead to a number of problems, such as increased costs, decreased profitability, and a higher risk of obsolescence.
Managerial efficiency is the ability of a company’s management to effectively use its resources to achieve its goals. Solvency is the ability of a company to meet its financial obligations as they come due. A low stock turnover does not necessarily indicate any problems with managerial efficiency or solvency.
In conclusion, a low stock turnover indicates that a company is holding too much inventory, which can lead to a number of problems.