What Are Some of the Means by Which Firms Can

question 104

Essay

What are some of the means by which firms can transfer risk to other parties? Should firms always transfer risks when it is possible to do so?

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Definitions:

Entrusts

To give someone the responsibility to take care of something or act on one's behalf.

Merchant

An individual or business entity engaged in the trade of goods, services, or both to consumers, primarily for earning a profit.

Original Owner

Refers to the first owner or possessor of an item or property after it was created or came into being.

Shipment Contract

An agreement in which the seller is obligated to send goods to a buyer, but the risk of loss passes to the buyer when the goods are delivered to the carrier.