Final answer:
The correct answer is FOB Shipping Point, which indicates that the buyer pays all shipping and freight costs. Option B is correct.
Step-by-step explanation:
FOB Shipping Point signifies that the shipment is free on board at the seller's location, and the buyer is responsible for all shipping and freight costs. This arrangement transfers the ownership of the goods from the seller to the buyer when the goods are loaded onto the carrier at the shipping point. Essentially, the buyer assumes responsibility for any potential damage or loss during transit and bears the expenses associated with transporting the goods to the final destination. This arrangement also implies that the seller doesn't cover the shipping costs and doesn't assume liability once the goods are in transit.
In contrast, "FOB Destination" would mean that the seller pays for shipping, and the title and liability transfer when the goods reach the buyer's specified destination.
Correct answer: b) FOB Shipping Point