What are four different methods by which an importer can pay an exporter? List them in increasing order of risk to the exporter
What will be an ideal response?
There are at least four different methods available for an importer to pay an exporter. The most straightforward method, and the one that is the least risky from the exporter's perspective, is to require cash in advance. The next least risky method is a documentary credit, then a documentary collection, and finally an open account, which is the most risky method of payment from the exporter's point of view.
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Free cash flow is
A) a financial ratio. B) an important measure of a company's ability to finance long-term assets. C) what remains after deducting dividends declared from net income. D) an important measure of a company's ability to invest in short-term assets.
Under which of the following conditions will the first-in, first-out method produce the same cost of goods manufactured as the weighted-average method?
A) There is no ending work in process inventory. B) There is no beginning work in process inventory. C) The beginning and ending work in process inventories are equal. D) The beginning and ending work in process inventories are both 50% complete.
Forging a business relationship in Guatemala would likely entail:
a. a dinner that establishes social relations. b. focusing first on the task then turning to social relations. c. avoiding all business-related discussions. d. avoiding attempts to foster social relations.
Sensitivity analysis determines how a change in a parameter affects the optimal solution
Indicate whether this statement is true or false.