Selling on consignment means that the small business owner does not purchase the merchandise carried from the supplier (called the consignor).

Question

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Selling on consignment means that the small business owner is only responsible for selling the merchandise on behalf of the consignor, and does not purchase the inventory upfront. The consignor retains ownership of the merchandise until it is sold to the end customer, at which point the consignor is paid a percentage of the sale price.

Selling on Consignment Means That the Small Business Owner Does