Which of the Following Is True for the Shipping Term

question 30

Multiple Choice

Which of the following is true for the shipping term F.O.B. (free on board) point of shipment?

• A) It requires the seller to bear the expense and risk of loss until the goods are tendered to the buyer at the place of destination.
• B) It refers to a pricing term that includes the cost of the goods and the costs of insurance and freight.
• C) It requires the seller to bear the expense and risk of loss of the goods until delivery has been tendered.
• D) The buyer bears the shipping expense and risk of loss while the goods are in transit.

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Definitions:

Education

The process of receiving or giving systematic instruction, especially at a school or university.

Productivity

The measure of how efficiently production inputs, like labor and capital, are being used to produce a given level of output.

Compensating Differential

Additional wages or benefits offered to employees to offset unpleasant aspects of a job or workplace conditions.

Nonmonetary Characteristics

Features or attributes of goods, services, or job positions that do not have a direct monetary value or financial aspect.