Consignments are a specialized marketing method whereby the
A) Consignee purchases goods for sale and sends payment when goods are sold
B) Consignee (agent) holds title to the product
C) Consignee pays for good up front and is paid when merchandise is sold
D) Consignee takes possession of merchandise but title remains with manufacturer

Question

Quizplus · Accepted Answer

In consignments, the consignee takes possession of the merchandise but the title remains with the manufacturer. This allows the manufacturer to have greater control over the sale of their product and reduces the risk for the consignee as they only pay for the goods if they are sold. Option A is incorrect as the consignee does not purchase the goods upfront, they only pay when items are sold. Option B is incorrect as the consignee does not hold the title to the product. Option C is incorrect as the consignee does not pay for goods upfront, they only pay when items are sold.

Consignments Are a Specialized Marketing Method Whereby the