Which of the Following Statements Is True for a Negotiable

question 7

Multiple Choice

Which of the following statements is true for a negotiable document of title?

• A)It serves as the contract between the seller and the shipper.
• B)It is given to the buyer even before he/she makes the payment for the goods.
• C)It shows that title cannot be surrendered to the buyer until the seller explicitly instructs.
• D)It shows that the buyer cannot reject the goods delivered.

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Definitions:

Merchandise Purchased

Goods acquired for resale by a retailer or wholesaler, recorded as an expense when sold.

Credit Terms

Credit terms are the payment conditions set by a seller, detailing the period during which a buyer must pay for purchased goods or services.

Discount Period

The time frame between the start date of a sale and its expiration, during which goods or services are offered at reduced prices.

Purchase Allowances

A reduction in the purchase price, allowed by the seller to the buyer, often due to minor defects or quality issues in the goods.