Which One of the Following Statements Is True

question 45

Multiple Choice

Which one of the following statements is true?

• A)FOB destination means the buyer has legal title to the goods while they are in transit.
• B)FOB shipping point means the seller has legal title to the goods while they are in transit.
• C)FOB destination means the seller has legal title to the goods until they reach the buyer's place of business.
• D)FOB shipping point means the buyer acquires legal title to the goods when they reach the buyer's place of business.

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Definitions:

Sales Force Incentives

Rewards or compensation given to sales personnel to motivate them to achieve sales targets, including bonuses, commissions, and non-monetary benefits.

Supply Chain

The network of all entities involved in producing and delivering a product or service to the consumer, including suppliers, manufacturers, and retailers.

Allocation

The process of distributing resources or items to specific areas, activities, or tasks based on a plan or system.

Bullwhip Effect

A phenomenon where fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.