Which of the Following Statements Is True About Open Account

question 24

Multiple Choice

Which of the following statements is true about open account?

• A) It is the most preferred method of payment in international business.
• B) Exporters can sell any open accounts in their possession, to avoid having to wait weeks or months to be paid for their exports.
• C) Exporters use this approach only with customers of long-standing or excellent credit, or with a subsidiary owned by the exporter because of the risk involved.
• D) It is a contract between the banks of the buyer and seller that ensures payment from the buyer to the seller upon receipt of an export shipment.

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Definitions:

Health-Care Powers

Legal authority granted to an individual (through a document or decree) to make medical decisions on behalf of another person.

Living Trust

A trust created by the grantor (settlor) and effective during his or her lifetime.

Intestacy Law

Legal provisions that govern the distribution of a deceased person's estate when they die without a valid will, determining how assets are allocated among survivors.

Estate Planning

Planning in advance how one’s property and obligations should be transferred on one’s death. Wills and trusts are two basic devices used in estate planning.