Under a consignment arrangement, the risk that merchandise might NOT sell is
A) held with the consignor.
B) held with the consignee.
C) shared by the consignor and the consignee.
D) There is no risk associated with goods held on consignment.

Question

Quizplus · Accepted Answer

The consignor retains ownership of the merchandise until it is sold, so the risk of not selling falls on them. If the goods do not sell, they may either be returned to the consignor or the consignee may negotiate a lower price to purchase them outright.

Under a Consignment Arrangement, the Risk That Merchandise Might NOT