Final answer:
The FOB terms determine the ownership transfer and shipping cost responsibility for goods, with 'FOB destination' indicating seller responsibility until arrival, and 'FOB shipping point' signifying buyer ownership upon shipment. The 'n/30' means payment within 30 days, while '1/10, n/30' allows a 1% discount for payment within 10 days.
Step-by-step explanation:
The financial terms FOB destination and FOB shipping point are related to shipping agreements in business, where FOB stands for "Free on Board". These terms determine when the ownership of goods passes from the seller to the buyer and who is responsible for the shipping costs.
a. FOB destination, n/30: This term means that the seller bears the shipping costs and retains ownership of the goods during transit, with ownership transferring to the buyer only when the goods arrive at the buyer's location. The 'n/30' indicates that payment is due within 30 days without any discount for early payment.
b, c, d. FOB shipping point, 1/10, n/30: Unlike 'FOB destination', 'FOB shipping point' implies that the buyer becomes the owner of the goods once they are shipped and is responsible for shipping costs. The '1/10, n/30' part means that the buyer can take a 1% discount on the invoice price if the payment is made within 10 days; otherwise, the full invoice amount is due within 30 days.
e. FOB destination, 1/10, n/30: Similar to 'FOB destination, n/30', the seller is responsible for the shipping costs and retains ownership until delivery. However, the '1/10, n/30' signifies that the buyer can benefit from a 1% discount if payment is made within 10 days, with the full payment due within 30 days if the discount is not taken.