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Exam CLTD topic 1 question 52 discussion

Actual exam question from APICS's CLTD
Question #: 52
Topic #: 1
[All CLTD Questions]

Which of the following terms of payment should an international purchasing manager use to guarantee that the shipment is made and the shipper gets paid for their product?

  • A. Letter of credit
  • B. Open account
  • C. Sight draft
  • D. Cash in advance
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Suggested Answer: D 🗳️

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sparkyh
1 year, 1 month ago
A. Letter of credit
upvoted 1 times
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dailong142002
3 years, 1 month ago
letter of credit (L/C)–An assurance by a bank that payment will be made as long as the sales terms agreed to by the buyer and seller are met. This method of payment for sales contracts provides a high degree of protection for the seller. Agree with Dpinv
upvoted 2 times
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Dpinv
3 years, 11 months ago
A letter of Credit payment is granted when delivery is made. Everyone wins both cash in advance and open account there is a risk . CIA risk on buyer. open account risk on seller
upvoted 4 times
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