Which of the Following Terms of Payment Should an International

question 6

Multiple Choice

Which of the following terms of payment should an international purchasing manager use to guarantee that the shipment is made and the shipper gets paid for their product?

• A) Letter of credit
• B) Open account
• C) Sight draft
• D) Cash in advance

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Definitions:

Journal

A record where all financial transactions are entered in chronological order, serving as the initial place of recording.

Error Indicating

A term that refers to signals or signs that there are mistakes within a system or process.

Operations

Refers to the daily activities and processes involved in running a business or manufacturing goods.

Bank Account

A financial arrangement with a banking institution that allows for the deposit and withdrawal of money.