The Use of Consignment Reduces the Average Amount of Inventory

question 3

True/False

The use of consignment reduces the average amount of inventory a buyer owns as well as improves velocity.

---

Definitions:

Interest Rate

The part of a loan charged as interest to the borrower, typically demonstrated as an annual percentage of the unsettled loan portion.

Monthly Payment

A regularly scheduled payment that is often used to repay loans over a specific period of time.

Lump Sum

A single payment made at a particular time, as opposed to several smaller payments or installments.

Interest Rate

The cost of borrowing money or the return on investment, represented as a percentage of the principal.