The Term F.O.B

question 38

Multiple Choice

The term F.O.B.:

• A)can indicate a destination or shipment contract.
• B)stands for "freight on board."
• C)requires the seller to insure the goods for the buyer's benefit.
• D)shifts the risk of loss to the buyer when the goods are identified.

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Definitions:

Maturity

The point in time when the principal amount of a loan, bond, or other financial instrument becomes due and is to be paid or settled.

Contract

A legally binding agreement between two or more parties that is enforceable by law.

Annually

Pertaining to something that occurs once every year or relating to a period of one year.

Line of Credit

A flexible loan arrangement with a bank or lender, allowing the borrower to draw funds as needed up to a certain limit.