Which of the Follow Is an Element of a Consignment

question 118

Multiple Choice

Which of the follow is an element of a consignment?

• A) The consignee only remits a small fee to the consignor when goods are sold.
• B) The consignor retains the risk of loss and title.
• C) A consignee's creditors may have a claim to consigned goods under certain circumstances.
• D) The consignor retains the risk of loss, but passes title to the consignee.
• E) The consignor keeps title, but passes the risk of loss to the consignee.

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Definitions:

Risk Premiums

The additional returns required by investors for taking on higher risk compared to a risk-free investment.

Maturity Risk

Refers to the risk associated with the length of time until the debt securities reach their date of maturity, affecting their price and interest rates.

Risk Premiums

The additional returns that an investor expects to receive from an investment to compensate them for higher risk.

Earning Power

An indication of a company's ability to generate profit from its operations, often used by investors to assess financial health.