Which term denotes a short-term agreement in which a dealer entrusts goods to a client without requiring immediate payment?

Which term denotes a short-term agreement in which a dealer entrusts goods to a client without requiring immediate payment?

• A. A premium price paid for selecting stones from a parcel.
• B. A short-term agreement in which a dealer entrusts goods to a client without requiring immediate payment.
• C. The price of a gem divided by its carat weight.
• D. A set of policies and processes that enable an organization to reduce environmental impacts and increase operating efficiency.

Answer: (B)

Consignment is the term for a short‑term arrangement where a dealer places goods with a client to be sold, but payment isn’t required upfront. The consignor retains ownership until the items are sold, and the consignee acts as an agent, displaying and selling the pieces and typically paying the consignor only after a sale or within agreed terms. This setup lets the dealer extend reach and move inventory without immediate cash outlay, while the risk and responsibility for unsold items typically stay with the consignor until sale. The other options describe a premium for selecting stones, a price-per-carat calculation, or an environmental program, none of which fit this deferral-sales arrangement.

Consignment is the term for a short‑term arrangement where a dealer places goods with a client to be sold, but payment isn’t required upfront. The consignor retains ownership until the items are sold, and the consignee acts as an agent, displaying and selling the pieces and typically paying the consignor only after a sale or within agreed terms. This setup lets the dealer extend reach and move inventory without immediate cash outlay, while the risk and responsibility for unsold items typically stay with the consignor until sale. The other options describe a premium for selecting stones, a price-per-carat calculation, or an environmental program, none of which fit this deferral-sales arrangement.