When an Exporter Is Dealing with a High Credit Risk

question 21

Multiple Choice

When an exporter is dealing with a high credit risk customer,________ as a form of payment is most often used.

• A) draft
• B) banker's acceptance
• C) open account
• D) cash in advance

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Definitions:

Obligor

An individual or entity that is legally bound to fulfill an obligation, such as making a payment or performing a service, under a contract.

Notice

Formal information or warning given to a person or public about an event, decision, or action.

Assignment Valid

Refers to the legal transfer of one party's rights and benefits under a contract to another party, recognized as legitimate and binding.

Delegable

Capable of being assigned or entrusted to another person or party, particularly in the context of duties or authority.