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CTP · Question #775
CTP Question #775: Real Exam Question with Answer & Explanation
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Question
- (Topic 8) purchase $3.1 million of equipment from ABC Co. XYZ Inc. wants to structure payment by paying 10% at time of order, 40% at time of shipment and the remaining 50% at time of receipt of the equipment. The last time XYZ Inc. purchased equipment from ABC Co. they never paid the final 50%, claiming the equipment did not work properly. Which of the following can ABC Co. use for this transaction to guarantee payment?
Options
- AInstallment credit
- BDocumentary collection
- CPerformance guarantee
- DCommercial letter of credit
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