Which of the Following Factors Is Most Important in Deciding

question 26

Multiple Choice

Which of the following factors is most important in deciding who bears the risk of loss between merchants when goods are destroyed during shipment?

• A) The agreement between the parties.
• B) Whether the goods are perishable.
• C) Who has title at the time of the loss.
• D) The terms of applicable insurance policies.

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Definitions:

Working Capital

The disparity between an organization's immediate assets and liabilities, showcasing its short-term economic viability and effectiveness.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business.

Withdraw

The act of removing funds from an account, typically from a bank or investment.

Investment

Allocation of resources, usually money, into a vehicle expected to generate income or profit, such as stocks, bonds, or real estate.