In the "All About You" feature, you read about consignment shops and how they provide an alternative to paying full price for quality goods. As a student living on a tight budget, you have decided to sell some of your textbooks. You are considering two options: selling the textbooks yourself or taking them to the second-hand bookstore that sells used textbooks on consignment.
Instructions
(a) What is selling on consignment? If you sell your books on consignment, will you be the consignor or the consignee?
(b) What are the advantages and disadvantages of selling your textbooks on consignment?
(c) It is suggested that there should be a written agreement between the consignor and consignee. If you decide to sell your textbooks on consignment, what should be agreed to in writing?
(d) Assume you decide to sell your books on consignment through a second-hand bookstore. What are the risks to you of doing this?
(e) Should you keep your accounting text book forever?