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Which of the Following Financing Methods Entails the Greatest Risk

question 61

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


Definitions:

Accounts Payable Period

This is the average number of days it takes for a business to pay its invoices from suppliers and vendors, indicating the efficiency of its payables management.

Letter Of Credit

A financial document issued by a bank guaranteeing a buyer's payment to a seller within a specified timeframe.

Written Statement

A document that records the details of a declaration or an agreement in writing.

Bank Payment

is a transaction where money is transferred from one bank account to another to fulfill a financial obligation.

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