If Goods in Transit Are Shipped FOB Destination

question 137

Multiple Choice

If goods in transit are shipped FOB destination

• A) the seller has legal title to the goods until they are delivered.
• B) the buyer has legal title to the goods until they are delivered.
• C) the transportation company has legal title to the goods while the goods are in transit.
• D) no one has legal title to the goods until they are delivered.

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Definitions:

Futures Contract

A standardized legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Underlying Asset

The financial instrument (e.g., stock, bond, commodity, or currency) on which a derivative instrument, such as an option or futures contract, is based.

Corporate Bond Portfolio

A collection of corporate bonds held by an investor or managed by a financial institution.

T-bond Futures

Financial contracts obligating the buyer to purchase U.S. Treasury bonds at a specified price at a future date, used for hedging and investment purposes.