Responsible for the risk of product ownership-distribution

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Reference no: EM131300057

In 2 Design, Inc., manufactures and sells unique kitchen and dining room table sets. The headquarters of the company is in Portland, Oregon, with manufacturing facilities in North Carolina. The owners are ready to expand their client base to Canada and Mexico, both logistically manageable with longer-term plans to expand to Europe. After some initial research, the owners of In 2 Design thought that offering their company name and logo to a foreign company to manufacture and sell their product line in return for a royalty would be beneficial for both parties. After more thought and discussion with other company owners who have contemplated doing the same thing, the owners of In 2 Design are even more unsure of what step to take next. I

If In 2 Design chooses to sell to a wholesaler who will then be responsible for the risk of product ownership, distribution, and sales, the shipping department of In 2 Design will want to secure a ___ when title is signed over to the merchandiser.

a. letter of credit

b. draft

c. receipt

d. bill of lading

e. sales draft

Reference no: EM131300057

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