In a Destination Contract, the ________ Bears the Risk of Loss

question 77

Multiple Choice

In a destination contract, the ________ bears the risk of loss while the goods are in transit.

• A) seller
• B) buyer
• C) third-party carrier
• D) seller and the third party carrier split the risk of loss equally
• E) buyer and seller split the risk of loss equally

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Definitions:

Strike Price

The fixed price at which an options contract may be purchased or sold upon its exercise.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Future Value

The amount of money an investment is expected to grow to over a period of time, assuming a particular interest or growth rate.