Which of the Following Is True of Open Accounts

question 13

Multiple Choice

Which of the following is true of open accounts?

• A) Sales on open accounts are very common method of payment in foreign trade.
• B) Sales on open accounts are generally recommended when special merchandise is ordered by the buyer.
• C) Sales on open accounts are not generally recommended when there is political unrest in the importer's country.
• D) When the country of the importer imposes difficult exchange restrictions, the best payment arrangement recommended is open accounts.
• E) Sales on open accounts are less risky for the seller when it involves new buyers.

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Definitions:

Trespass to Personal Property

The act of unlawfully interfering with another person's possessions without consent.

Permission

Authorization granted by one party to another to do something that is otherwise not allowed or would be illegal without such authorization.

Lawsuit

A legal action brought by one party against another in a court of law, typically seeking a remedy for a wrong.

Negligence Per Se

A legal doctrine wherein an act is considered negligent because it violates a statute or regulation.