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Which of the Following Is True for the Shipping Term

Question 21

Multiple Choice

Which of the following is true for the shipping term F.O.B. (free on board) point of shipment?


A) It requires the seller to bear the expense and risk of loss until the goods are tendered to the buyer at the place of destination.
B) It refers to a pricing term that includes the cost of the goods and the costs of insurance and freight.
C) It requires the seller to bear the expense and risk of loss of the goods until delivery has been tendered.
D) The buyer bears the shipping expense and risk of loss while the goods are in transit.

Correct Answer:

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