Advance payment is common in all of the following situations EXCEPT when ________.
A) two parties are unfamiliar with each other
B) two parties are very familiar with each other
C) the transaction is for a relatively small amount
D) the buyer is unable to obtain credit

Question

Quizplus · Accepted Answer

Advance payment is not common when two parties are very familiar with each other as there is an established level of trust and reliability between them. In such cases, the need for advance payment is often reduced or eliminated.

Advance Payment Is Common in All of the Following Situations