CIPS L3M1 Exam - Topic 3 Question 25 Discussion

Actual exam question for CIPS's L3M1 exam

Question #: 25
Topic #: 3

[All L3M1 Questions]

Which of the following is least risky from the buyer's viewpoint?

APayment on delivery

BPayment of 50% at time of order; with balance to be paid 90 days after delivery

CPayment in full at time of order

DPayment 60 days after delivery

Show Suggested Answer

Suggested Answer: C, D

To gain market share and to create shareholder value (increase the value of shares) are common aims of private sector organisations.

The other two answers are the antithesis of what firms usually want.

by Ona at Oct 21, 2024, 08:49 AM

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Dorian

6 months ago

I’m not sure about that, seems like a gamble either way.

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Blossom

6 months ago

Wait, isn't paying in full at order risky too?

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Leota

6 months ago

But what if the seller doesn't deliver?

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Alonso

7 months ago

I agree, no upfront risk is the way to go!

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Linwood

7 months ago

Payment on delivery is definitely the safest option.

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Bettye

7 months ago

I’m a bit confused about the 60 days after delivery option. It seems safer than paying upfront, but I wonder if it could lead to disputes later.

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Art

7 months ago

I practiced a similar question where payment terms were key. I think payment in full at the time of order is definitely the riskiest.

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Darrel

7 months ago

I'm not entirely sure, but I feel like paying 50% upfront could be risky if the seller doesn't deliver.

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Paulina

8 months ago

I remember discussing payment methods in class, and I think payment on delivery is the safest option for buyers.

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Tequila

8 months ago

I'm a bit confused by this question. I'll need to review the payment terms carefully to decide which one poses the least risk for the buyer.

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Carma

8 months ago

I'm leaning towards option B - 50% upfront and the rest 90 days after delivery. That way the buyer has some skin in the game but isn't fully exposed.

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Eura

8 months ago

Payment on delivery seems like the safest bet for the buyer. They don't have to worry about the seller not delivering the goods if they've already paid.

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Arminda

8 months ago

Hmm, I'm not sure about this one. I'll have to think through the pros and cons of each payment option to determine which one is the least risky for the buyer.

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Cortney

8 months ago

This seems like a straightforward question about payment terms and risk. I'll carefully consider the options and choose the one that is least risky for the buyer.

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Layla

1 year ago

I'd rather not risk getting a dud product. I'm going with A) Payment on delivery - no money down, no worries!

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Vernice

1 year ago

B) Payment of 50% at time of order; with balance to be paid 90 days after delivery is a good compromise. You don't have to front the full cost, but the seller still has some skin in the game.

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Olga

1 year ago

D) Payment 60 days after delivery is the way to go. That gives you time to inspect the product and make sure it's what you ordered before you pay.

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Ardella

1 year ago

I think I'd go with C) Payment in full at time of order. That way, you can be sure the seller has your money and will be motivated to fulfill the order.

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Vernice

11 months ago

D) Payment 60 days after delivery could be risky if the seller doesn't deliver as promised.

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Marylyn

11 months ago

I would go with A) Payment on delivery to minimize the risk of not receiving the product.

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Stefanie

12 months ago

I think B) Payment of 50% at time of order; with balance to be paid 90 days after delivery is a good compromise.

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Brittney

12 months ago

I agree, C) Payment in full at time of order seems like the safest option.

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Terrilyn

1 year ago

A) Payment on delivery seems like the safest option for the buyer. You don't have to worry about getting stuck with the product if the seller doesn't deliver.

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