​The Risk to the Exporter Is Highest with the ____

question 17

Multiple Choice

​The risk to the exporter is highest with the ____ payment method.

• A) ​prepayment
• B) ​letter of credit
• C) ​sight draft
• D) ​open account

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Definitions:

Preexisting Duty

An obligation or duty that already exists under a contract, and performing it, therefore, does not constitute consideration for a new promise.

Law

Rules devised and applied by institutions of society or the government to modulate behavior.

Legally Sufficient Value

An acceptable form or measure of value that must be provided in a contract to make it binding and enforceable under law.

Consideration

Something of value (such as money, goods, services, or promised actions) that is exchanged between parties in a contractual agreement.