When Consigned Goods Are Sold by a Factor

question 41

Multiple Choice

When consigned goods are sold by a factor:

• A) title passes when the consignor approves the sale.
• B) title passes even if the goods have been stolen,provided the factor is ignorant of this fact.
• C) the sale passes the title of the owner to the buyer.
• D) strict compliance with the Federal Factors Act is required to pass title.

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Definitions:

Market Price

This represents the price at which a commodity, security, or other financial instrument is traded on the open market and can be purchased or sold.

Common Stock

Signifies holding stakes in a corporation, which provides owners with the right to vote and a portion of the company's earnings via dividends.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or under-valued.