What Is a Field Warehouse Arrangement

question 91

Multiple Choice

What is a field warehouse arrangement?

• A)a warehouse arrangement in which the inventory is stored and tracked by the lender on the lender's premises
• B)a warehouse arrangement in which the inventory is stored on the borrower's premises but is tracked by the lender
• C)a warehouse arrangement in which the inventory is stored by a business that exists for the sole purpose of storing and tracking the inflow and outflow of inventory
• D)a warehouse arrangement that is operated by a third party but is set up on the borrower's premises in a separate area so that the inventory collateralizing the loan is kept apart from the borrower's main plant
• E)a warehouse arrangement in which the inventory is stored and tracked by the borrower on the borrower's premises

---

Definitions:

Negotiable

Legally transferable from one person to another.

Agency's Fee

A charge or payment made to an agency for its services, typically a percentage of the contract value.

Voucher Checks

A type of check that includes vouchers detailing the reason for the payment, often used by businesses for record-keeping purposes.

Three-Ring Binder

A folder or notebook containing three metal rings that hold paper sheets or plastic sleeves, allowing for easy removal and addition of documents.