Company a Has Inventory Out on Consignment and Held for Sale

question 40

Multiple Choice

Company A has inventory out on consignment and held for sale by Company B.Which Company will include the goods in their inventory?

• A)Company A
• B)Company B
• C)Either Company A or Company B
• D)Cannot be determined from the facts

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when managing financial assets or decisions for them.

Quorum

The minimum number of members that must be present at a meeting to make the proceedings of that meeting valid.

Shareholder Meetings

Gatherings of a corporation's shareholders, held to discuss company affairs, make decisions, and vote on corporate governance matters.

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares owned by the company’s officers and insiders.