Final answer:
In a consignment, the consignor owns the goods; the consignee holds the goods in order to sell them to a buyer.
Step-by-step explanation:
This relationship allows the consignor to extend their market reach by utilizing consignees, who often have established sales networks and customer bases.
The consignee acts as an intermediary, often taking possession of the goods without actually owning them, which reduces the risk for the consignee since they do not have to purchase the inventory outright.
The consignee's goal is to sell the goods on behalf of the consignor, for which they receive a portion of the sales as commission or profit. This type of arrangement is common in retail sectors where the inventory can be expensive or slow-moving.