Which of the Following Completely Eliminates the Risk of Nonpayment

question 79

Multiple Choice

Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction?

• A)documentary credit (letter of credit)
• B)documentary collection
• C)cash in advance
• D)sales on open account
• E)draft

---

Definitions:

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formation, experimentation, and conclusion.

Basic Steps

Fundamental movements or techniques that serve as the foundation for more complex activities or processes.

Hypotheses

Tentative explanations or predictions that can be tested through research and experimentation.

Theories

Unobservable constructs that are linked together in some logical way.