Which of the following is true of open accounts?

Which of the following is true of open accounts?



A. Sales on open accounts are very common method of payment in foreign trade.

B. Sales on open accounts are generally recommended when special merchandise is ordered by the buyer.

C. Sales on open accounts are not generally recommended when there is political unrest in the importer's country.

D. When the country of the importer imposes difficult exchange restrictions, the best payment arrangement recommended is open accounts.

E. Sales on open accounts are less risky for the seller when it involves new buyers.


Answer: Sales on open accounts are not generally recommended when there is political unrest in the importer's country.


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