In an Origin Contract Who Bears the Risk of Loss

question 60

Multiple Choice

In an origin contract who bears the risk of loss while the goods are in transit?

• A) The seller
• B) The buyer
• C) Both the buyer and seller with the loss being proportioned 50% to the buyer and 50% to the seller
• D) Both the buyer and seller with the loss being proportioned 75% to the buyer and 25% to the seller
• E) Both the buyer and seller with the loss being proportioned 25% to the buyer and 75% to the seller

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Definitions:

Net Cash

The total amount of cash and cash equivalents a company possesses after subtracting all its cash outflows from its cash inflows.

Operating Activities

Activities that relate to the primary operations of a company, such as selling, general, and administrative activities, as well as the production of goods and services.

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures needed to maintain or expand the asset base.

Net Income

The total profit or loss of a company after all expenses, including taxes and interest, have been subtracted from revenue.