As part of a peer-review project, you are reviewing one of your classmates’ responses to the following question:
“Explain what it means if a company has some of its inventory out on consignment. Who owns the goods? In other words, whose inventory would they be part of?” Your classmate responded as follows:
“If a company has some of its inventory out on consignment, it means they are using a consignor to sell their goods and the consignor is taking a cut of the profit for its efforts (a consignment fee).
When a company’s inventory is out on consignment, it is still part of their inventory and would remain there until the goods are sold. Consignors do not take possession of the inventory; they just sell it on behalf of a company.”

Required
Identify three ways to substantively improve your classmate’s response.