Red Bev LLC Contracts to Buy Two Tons of Strawberries

question 48

Multiple Choice

Red Bev LLC contracts to buy two tons of strawberries from Sweet Fruits, Inc. The contract states that Sweet Fruits is required to ship the strawberries to Red Bev by Truck Transport Inc. The contract is

• A)a bill of lading.
• B)a destination contract.
• C)a shipment contract.
• D)a warehouse receipt.

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Definitions:

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically including notes, bonds, and bills, which are used by governments and corporations to raise funds.

Ownership Interest

A legal right or stake in property, indicating the owner's claim to control and benefit from it.

Articles of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation.

Capital Surplus

Excess amount received by a company over the par value of its stock, representing additional paid-in capital.