Question

A company that chooses to arrange for the transportation of products it buys from a supplier - and to pay for these services - would elect for which shipping terms?

a) FOB-origin/prepaid
b) FOB-destination
c) FOB-origin/collect
d) FOB-destination/collect
e) FOB-origin/allowed

Answer 1

When a company chooses to arrange for the transportation of products it buys from a supplier and pays for these services, it would elect for FOB-origin/prepaid shipping terms.

Step-by-step explanation:

When a company chooses to arrange for the transportation of products it buys from a supplier and pays for these services, it would elect for FOB-origin/prepaid shipping terms. FOB-origin/prepaid means that the buyer takes ownership of the goods at the point of origin, arranges and pays for the transportation, and bears the risk of loss or damage during transportation.