The term free on board means that the price includes?
- costs and insurance only
- costs and freight only
- freight and insurance only
-
costs, insurance and freight
The correct answer is: D
Explanation
The term Free On Board is a transportation term that indicates when liability and ownership of goods are transferred from a seller to a buyer. It shows when the risk of loss shifts from the seller to the buyer, and who pays the costs of freight and insurance.