Scenario: Gro-Tru Grows to Europe

question 107

Multiple Choice

Scenario: Gro-Tru Grows To Europe
Gro-Tru, a maker of chemical fertilizers and pesticides, sees enormous growth potential in Central Europe. The company has received several unsolicited inquiries from potential importers in the region, but in most cases, they have expressed difficulty in getting the hard currency to pay for the imports. Alistair Green, vice president for new business development, is exploring how Gro-Tru might meet the needs of the potential market.
-One option that intrigues Alistair is the process in which one company sells to another its obligation to make a purchase in a given country, an arrangement called ________.

• A) barter
• B) offset
• C) switch trading
• D) buyback

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Definitions:

Customer Payment

A financial transaction where a client settles the amount owed for a service or product provided by a company, completing the sale.

QuickBooks

An accounting software package developed and marketed by Intuit, used for small and medium-sized businesses.

Payment Method

The means or process by which a payment is made and received, which can include cash, checks, credit cards, or electronic transfers.