Because Importers and Exporters Assume Different Risks,the Most Preferred Way

question 27

Multiple Choice

Because importers and exporters assume different risks,the most preferred way to conduct business and minimize these risks is:

• A) Cash in advance.
• B) Open account.
• C) Documentary sale.
• D) All of the above.

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Definitions:

Operating Assets

Assets used in the daily operations of a business to generate revenue, including cash, inventory, and equipment.

Return on Investment

A performance measure used to evaluate the efficiency of an investment or compare the efficiencies of several different investments.

Flexible Budgets

Financial plans that can be adjusted or modified to take into account changes in volume of operations or activity levels, allowing for more accurate budgeting.

Manufacturing Overhead

This includes all the indirect costs involved in manufacturing a product, such as utilities, depreciation, and salaries of supervisors.