The Advantage of Consignment to the Buyer Is the Ability

question 49

True/False

The advantage of consignment to the buyer is the ability to defer ownership and avoid committing working capital and incurring carrying charges.

---

Definitions:

Long-Term Notes

Debt securities with a maturity date longer than one year, representing borrowed funds that need to be repaid.

Fixed Rates

Interest rates that remain constant over the lifetime of a financial instrument, unaffected by market fluctuations.

Floating Interest

An interest rate that changes over the life of a loan or mortgage, based on the current market conditions or an index.

Solvency

The ability of an entity to meet its long-term debts and financial obligations.