"Concentrations of Credit Risk" Occur If

question 118

Multiple Choice

"Concentrations of credit risk" occur if:

• A) A significant portion of receivables are due from a few major customers.
• B) A significant portion of receivables are from customers in the same industry.
• C) Both of the above.
• D) Neither of the above.

---

Definitions:

Shipping Terms

Refers to the agreed conditions between a buyer and seller regarding the delivery of goods, including the allocation of shipping costs and responsibilities.

International Transportation

The movement of goods or people across international borders, involving various modes of transport like air, sea, road, or rail.

Sight Draft

A financial document demanding immediate payment upon presentation to the drawee, commonly used in international trade to control the transfer of goods.

Buyer's Bank

The financial institution that processes payments on behalf of a buyer, especially in international trade transactions.