The Choice of a Proper Incoterm Is a Critical Decision

question 24

Multiple Choice

The choice of a proper Incoterm is a critical decision because

• A) it can be an integral part of export strategy.
• B) it is linked to the level of customer service the firm is attempting to provide.
• C) it can be a competitive advantage.
• D) All of the above
• E) None of the above

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Definitions:

Contra Account

An account used in accounting to reduce the value of a related account; it has a balance opposite to the normal account balance.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which may differ from its market value.

Carrying Value

The book value of an asset on a company's balance sheet, calculated as the original cost minus accumulated depreciation.

Loss On Redemption

The financial loss incurred when a debt instrument, such as a bond, is repaid before its maturity date.