One characteristic of a conditional sales contract is that the:
A)seller retains legal ownership until the buyer completes payment for the goods.
B)buyer is compensated for its opportunity costs.
C)seller receives a prepayment in full.
D)invoice is paid in one lump sum at the end of the credit period.
E)ownership of the goods changes to the buyer immediately upon delivery.

Question

Quizplus · Accepted Answer

A conditional sales contract is a financing agreement in which the seller retains legal ownership of the goods until the buyer completes payment for them. This means that the buyer has possession and use of the goods, but legal ownership remains with the seller until the buyer pays off the contract.

One Characteristic of a Conditional Sales Contract Is That The