With a Simple Delivery Contract Involving a Merchant,when Does Risk

question 4

Multiple Choice

With a simple delivery contract involving a merchant,when does risk of loss transfer to the buyer?

• A) When money is transferred
• B) When the items are tendered
• C) When the buyer takes possession
• D) One day after goods are identified to the contract
• E) When goods are identified to the contract

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Definitions:

Dividend

A Dividend is a payment made by a corporation to its shareholders, usually derived from the company's profits.

Basis of Property

The basis of property is the starting point for determining the gain or loss on the sale, exchange, or other disposition of property, generally its cost plus improvements and minus depreciation.

Recognized Gain

The portion of profit from the sale of an asset that must be reported for taxation purposes.

Shareholder

An individual or institution that owns a share of a company's stock, making them a partial owner of the company.