Under Which of the Following Terms Will the Buyer Be

question 155

Multiple Choice

Under which of the following terms will the buyer be required to pay transportation costs?

• A) FOB destination
• B) FOB shipping point
• C) freight out
• D) delivery expense

---

Definitions:

Stock Splits

A corporate action to increase the number of outstanding shares, thereby reducing the price per share, without changing the market cap.

Residual Dividend Policy

A strategy where dividends paid to shareholders are set as the remainder after all project and operation expenses and investments are covered.

Residual Dividend Policy

A corporate approach to dividends where the amount distributed is based on profits remaining after all operational and expansion expenses are covered.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to vote at shareholder meetings and to receive dividends.