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Does the small business gain what advantage by selling on consignment? A) Shorter lead time when reordering than with standard contracts B) Better customer service C) Not bearing the risk of loss for the consigned goods D) Receiving absolute title to the goods prior to paying for them
Does the small business gain what advantage by selling on consignment?
A) Shorter lead time when reordering than with standard contracts
B) Better customer service
C) Not bearing the risk of loss for the consigned goods
D) Receiving absolute title to the goods prior to paying for them
Expert Solution
The answer is C) Not bearing the risk of loss for the consigned goods
Consignment puts the physical ownership in the hands of the consignee, therefore the loss will be theirs.
Other Options
- Shorter lead time in reordering is not a unique advantage of consignment
- Better customer service is not a guarantee of consignment.
- The consignor does not receive absolute title prior to the goods being sold.
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