Which of the following is the most risky for an exporter?
A) Cash in advance
B) Irrevocable letter of credit
C) Bank collection time draft
D) Consignment
E) Revocable letter of credit

Question

Quizplus · Accepted Answer

In a sale made on consignment, goods are shipped to the buyer, and payment is not made until they have been sold. All the payment risk is assumed by the seller, so such terms should not be offered without making the same extensive investigation of the buyer and country as that recommended for open-account terms.

Which of the Following Is the Most Risky for an Exporter