Which of the following financing methods entails the greatest risk for importers?
A)documentary collection
B)advance payment
C)letter of credit
D)open account

Name: Which of the following financing methods entails the greatest risk for importers? A)documentary collection B)advance payment C)letter of credit D)open account
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Question

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Advance payment entails the greatest risk for importers because they have to pay the exporter before receiving the goods, leaving them vulnerable if the exporter fails to deliver.

Which of the Following Financing Methods Entails the Greatest Risk