APICS CLTD Exam - Topic 3 Question 105 Discussion

Actual exam question for APICS's CLTD exam

Question #: 105
Topic #: 3

Which of the following terms of payment should an international purchasing manager use to guarantee that the shipment is made and the shipper gets paid for their product?

ALetter of credit

BOpen account

CSight draft

DCash in advance

Show Suggested Answer

Suggested Answer: D

by Thaddeus at Aug 03, 2025, 04:53 PM

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Tammy

4 months ago

I disagree, cash in advance is the best way to ensure payment!

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Aliza

4 months ago

Open account? That's too trusting for international deals.

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Corrinne

5 months ago

I think cash in advance is risky for the buyer.

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Tegan

5 months ago

Definitely a Letter of credit! It's the safest option.

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Carlota

5 months ago

Wait, are people really using sight drafts these days?

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Emogene

5 months ago

I feel like open account is the least secure option, but I’m not confident about which one guarantees shipment.

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Dorinda

6 months ago

Sight draft sounds familiar, but I can't recall if it ensures payment before shipment.

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Andree

6 months ago

I remember practicing a question about payment terms, and I think cash in advance might be too risky for the buyer.

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Rodrigo

6 months ago

I think a letter of credit is the safest option for both parties, but I'm not entirely sure if it guarantees shipment.

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Shaunna

6 months ago

I'm a bit confused on the differences between these payment terms. I'll need to review my notes to decide which one is the most secure.

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Lindsey

7 months ago

Okay, I remember discussing this in class. I believe letter of credit is the best choice to protect both the buyer and the seller.

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Margarita

7 months ago

Definitely not open account - that's way too risky for an international transaction. I'm leaning towards letter of credit or sight draft.

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Chau

7 months ago

Hmm, I'm not sure about this one. I'll have to think it through carefully. Maybe letter of credit or cash in advance?

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Tijuana

7 months ago

I think the answer is A. Letter of credit seems like the safest option to guarantee the shipment and payment.

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Merrilee

7 months ago

Sight draft? Sounds like something out of a spy movie. I'll stick with the classic letter of credit.

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Ailene

7 months ago

I believe A) Letter of credit is the safest option to ensure both parties are protected.

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Izetta

8 months ago

I'm not sure, but I think D) Cash in advance could also guarantee payment.

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Vincent

8 months ago

I agree with Jenifer, using a letter of credit ensures payment for the shipment.

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Isreal

8 months ago

Cash in advance? Who do they think we are, millionaires? Letter of credit is the way to go.

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Kiera

4 months ago

Open account could lead to issues later on.

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Hubert

4 months ago

Cash in advance is too risky for buyers.

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Trevor

4 months ago

Letter of credit is definitely safer.

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Markus

5 months ago

Agreed! It protects both parties.

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Lenna

9 months ago

Open account? No way, that's way too risky for an international deal. I'd choose letter of credit any day.

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Nenita

7 months ago

Definitely, letter of credit is the safest option for international transactions.

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Annice

8 months ago

A) Letter of credit

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Jenifer

9 months ago

I think the answer is A) Letter of credit.

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Dorathy

9 months ago

Definitely going with letter of credit. It's the safest option for international transactions.

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Harley

7 months ago

Sight draft can be risky too, the shipper may not get paid if the buyer refuses to accept the goods.

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Antonette

7 months ago

I think cash in advance is too risky, you never know if the shipment will arrive.

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Alverta

8 months ago

Using letter of credit ensures that the shipment is made and the shipper gets paid. It's a reliable choice.

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Jutta

9 months ago

I agree, letter of credit provides security for both parties.

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Pok

9 months ago

I agree, letter of credit is the safest option for international transactions.

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Alline

9 months ago

Letter of credit is definitely the way to go. It provides security for both parties.

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