Asked by Mercy Ikediuba on Jun 10, 2024
Verified
Jonathan imports a guitar from MusicStore Inc., a musical instrument manufacturing company in Germany. Jonathan pays the full amount in advance with his credit card. Given the scenario, which of the following statements is true?
A) The payment method is the safest for Jonathan.
B) The payment method is the safest for MusicStore Inc.
C) Jonathan does not face any potential risk regarding the delivery of the guitar.
D) MusicStore Inc. does not have a window to create an unbalanced value flow.
Unbalanced Value Flow
A situation in a business process where the value output is not proportional to the value input, leading to inefficiencies or waste.
Potential Risk
The possibility of a negative event occurring, which could lead to harm or loss.
Safest
Referring to the lowest risk condition or option, often used in the context of investments or decisions.
- Become familiar with the multiple payment options available in international commerce, such as pre-payment, commercial letters of credit, methods of documentary collection, and agreements on open accounts.
- Pinpoint the security hazards linked to assorted payment methods for importers and exporters.
Verified Answer
Learning Objectives
- Become familiar with the multiple payment options available in international commerce, such as pre-payment, commercial letters of credit, methods of documentary collection, and agreements on open accounts.
- Pinpoint the security hazards linked to assorted payment methods for importers and exporters.
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