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

• A. A discounted price for buying an entire parcel or a substantial part of it.
• B. Exchanging information and developing contacts among people with a common professional or special interest.
• C. The price of a gem divided by its carat weight.
• D. A short-term agreement in which a dealer entrusts goods to a client without requiring immediate payment.

Answer: (D)

Consignment is the arrangement where a dealer leaves goods with a client to display or sell, and payment is not due until the goods are sold (or a defined period ends). Ownership stays with the dealer until sale, while the client acts as a sales channel and typically earns a commission. This setup matches the described scenario precisely: goods are entrusted and payment is postponed. The other ideas describe a bulk discount, professional networking, or price per carat—none of which involve entrusting inventory to another party with deferred payment, so they don’t fit the situation.