Which of the Following Is True If an Owner Entrusts

question 19

Multiple Choice

Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind?

• A) The merchant can transfer all rights in the goods to a buyer in the ordinary course of business.
• B) The merchant can only transfer voidable title until any funds in the possession of the merchant are transferred to the owner.
• C) The merchant can only transfer void title until any funds in the possession of the merchant are transferred to the owner.
• D) The merchant can only transfer temporary title until any funds in the possession of the merchant are transferred to the owner.
• E) The merchant must have any purchaser sign a document acknowledging that the purchaser will return the goods upon the request of the owner.

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Definitions:

Labor Hours

The number of hours worked by employees for the production of goods or services.

Machine Hours

A measure of production or work performed, calculated as the number of hours a machine is operated.

Lease

A contractual agreement where one party (the lessor) allows another party (the lessee) to use an asset for a specified period in exchange for payment.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the quantity of output produced, representing the average cost per unit of output.