If a Seller Requires a Credit Commitment from a Customer

question 307

Multiple Choice

If a seller requires a credit commitment from a customer before goods are delivered, a(n) ________________ is in order.

• A) Invoice.
• B) Open account.
• C) Promissory note.
• D) Conditional sales contract.
• E) Commercial draft.

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Definitions:

Sophisticated

Having a complex or nuanced understanding, often referring to a high level of experience or education.

Approved

Authorization or sanction officially given.

Accredited Investor

An individual or a business entity that is allowed to deal in securities that may not be registered with financial regulatory authorities.

Natural Person

A human being, as opposed to a legal person, which can be an organization or entity recognized by law.