Haha, this question is like a game of 'who's got the hot potato?' The supplier's got the material, but no one wants the liability. I'd say C is the way to go.
Hmm, I'm torn between B and C. I think they both capture some aspects of supplier consignment, but I'll go with C since the question specifies the material is stored on the buyer's premises.
Option C seems to be the most accurate description of supplier consignment. The material is stored on the buyer's premises, but the supplier still owns it.
A) A supplier stores your material in its premises but has no liability on the consignment stock. Well, that can't be right. The whole point of consignment is that the supplier retains ownership of the material.
B) A supplier provides you with material with agreed periods that is stored in its premises. Hmm, I don't think that's quite right. Isn't the whole point of consignment that the material is stored on the buyer's premises?
D) A supplier provides you with material with agreed periods and you have the liability of the consignment stock. Interesting, I thought the supplier was responsible for the consignment stock.
C) A supplier provides you with material that is stored on your premises but is still the property of the supplier. Seems like the most accurate description of the consignment process.
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