Which of the Following Is Correct with Regard to Risk

question 4

Multiple Choice

Which of the following is correct with regard to risk of loss, where the goods are in the possession of a bailee and are covered by a negotiable document of title?

• A) Risk of loss passes when the document is tendered to the buyer.
• B) Risk of loss passes when notification of the arrival of the goods is given to the buyer.
• C) Risk of loss passes when the buyer receives the document.
• D) If the buyer is a merchant, risk of loss passes to the buyer when the goods are delivered.

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Definitions:

Future Price

The predicted price of a commodity, security, or currency in the future, often determined by future contracts in the marketplace.

Demand Curve

A chart illustrating the connection between an item's price and the amount buyers are prepared to buy at different price levels.

Shift

A change in the position of a demand or supply curve, indicating a change in the quantity demanded or supplied at various prices.

Price Reductions

A decrease in the selling price of goods or services, often used to stimulate demand or clear inventory.