Who is referred to as the person or business that receives goods on consignment?

The correct answer is the consignee. In a consignment arrangement, the consignee is the individual or business that accepts goods for sale on behalf of the consignor, who is the owner of those goods. The consignee does not purchase the goods outright but instead agrees to sell them, often receiving a commission based on the sales made. This arrangement allows the consignor to retain ownership of the products while the consignee attempts to sell them, thus minimizing financial risk for the consignor.

The concept of consignment is particularly beneficial in retail and supply chain contexts, where businesses want to minimize inventory costs while reaching a broader market through established sellers or distributors. The terms and conditions of the consignment, including how sales proceeds are shared, are typically outlined in a consignment agreement.