Which of the Following Is True of a Sale by Entrustee

question 16

Multiple Choice

Which of the following is true of a sale by entrustee?

• A)The entrustee has the power to transfer the title of the goods to a third party in the entruster's name.
• B)The goods entrusted are subject to the claims of the entrustee's creditors.
• C)The entrustee is not liable to the owner for damages caused by the sale of the goods.
• D)The entrustee, as a prospective customer, cannot convey the goods if it is obtained by worthless check or fraud.

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Definitions:

Supply Chain Surplus

The total value generated by the supply chain, measured as the difference between the value of the final product to the consumer and the costs of the supply chain.

Supply Chain

A network of all entities involved in producing and delivering a specific product or service, from raw materials to end customers.

Bullwhip Effect

The phenomenon in supply chains where small fluctuations in demand at the retail level cause progressively larger variations in demand at wholesale, distributor, and manufacturer levels.

Lot Sizes

The number of units of a product that are manufactured or acquired in a single production run or order, affecting both inventory levels and production cost.