Final answer:
FOB shipping point refers to the situation in which title to goods in transit rests with the seller. The correct option is A.
Step-by-step explanation:
FOB shipping point refers to the situation in which title to goods in transit rests with the seller. This means that once the goods are shipped, the seller no longer has control or responsibility over them.
For example, if a buyer in California purchases goods from a seller in New York with FOB shipping point terms, the title to the goods transfers to the buyer as soon as they are shipped from the seller's location in New York. The buyer becomes responsible for the goods and any risks associated with their transportation.
It is important to note that FOB (Free on Board) is a commonly used shipping term in the business world, and it is essential for both buyers and sellers to understand its implications when negotiating contracts and determining who bears the responsibility and cost of shipping. The correct option is A.