Which of the Following Financing Methods Entails the Lowest Risk

question 4

Multiple Choice

Which of the following financing methods entails the lowest risk for exporters?

• A) supersedeas bond
• B) advance payment
• C) letter of credit
• D) open account

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Definitions:

Checking Account

A checking account is a bank account that allows for easy access to funds, including deposits and withdrawals, usually without limits on the number of transactions.

Financial Records

Documents that track and provide information about the financial activities, situation, and performance of an individual or organization.

Disbursements

Payments made by a business or organization, often involving the distribution of funds, such as payroll or expense reimbursements.

Certificate

A document officially recognizing a certain achievement, qualification, or standard, often issued after the completion of educational courses or training.