Which of the Following Methods of Financing Would Be Used

question 71

Multiple Choice

Which of the following methods of financing would be used if the exporting and importing parties had a strong, long-standing relationship?

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

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Definitions:

Conditions Of Worth

External standards that individuals believe they must meet to gain respect and love from others, influencing self-esteem.

Intolerance Of Uncertainty Theory

A psychological theory suggesting that an inability to tolerate the unknown or ambiguous situations contributes to anxiety and worry.

Negative Event

An occurrence perceived as adverse, harmful, or undesirable, which can impact an individual's mental, physical, or emotional state.

Avoidance Theory

A psychological theory suggesting that individuals may engage in certain behaviors to avoid experiencing discomfort or distressing thoughts and feelings.