Which term refers to a long-term agreement in which a dealer or manufacturer loans goods to a retailer?

• A. A shared, unalterable ledger used to record transactions and track assets through a supply chain or business network.
• B. A long-term agreement in which a dealer or manufacturer loans goods to a retailer.
• C. A discounted price for buying an entire parcel or a substantial part of it.
• D. The price of a gem divided by its carat weight.

Answer: (B)

Consignment describes a long-term arrangement where a dealer or manufacturer provides goods to a retailer to sell on their behalf, while ownership remains with the supplier until a sale occurs. The retailer can display and sell the items with little to no upfront cost, and payment to the consignor happens only after a sale, with unsold items typically returned or renegotiated. This setup lets the consignor maintain control of pricing and inventory, while the retailer assumes the selling risk and responsibility. In accounting, the inventory is owned by the consignor until sold, which affects how each party records it on their books.

The other options refer to different concepts: a shared ledger relates to recording transactions in a network, not lending inventory; a bulk discount is about pricing for large purchases; price per carat is a value metric, not an inventory lending arrangement.