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Multiple Choice

Question 1: What is the primary objective of a business's collection of payments?

• a) To track customer preferences

• b) To ensure timely revenue

• c) To gather demographic data

• d) To promote discounts

Multiple Choice

Question 2: Which of the following is NOT a common method for customers to make payments?

• a) Credit card

• b) Cash

• c) Barter trade

• d) Singing a song

Multiple Choice

Question 3: Which of payment method is less reliable for the seller?

• a) Clean collection

• b)Documentary Collection

• c) Both a and b

Multiple Choice

Question 4: When a business accepts a customer's payment in cash, what does it need to provide as proof of transaction?

• a) A loyalty card

• b) An invoice

• c) A handshake

• d) A receipt

Multiple Choice

Question 5: Which of payment method that the payment must be made before receiving the goods

• Clean collection

• Documentary Collection

Multiple Choice

Question 6: Give correct answer about clean collection payment method.

• a) Lower cost than documentary collection

• b) Safer for seller than documentary collection

• c) Both a and b

Multiple Choice

Question 7: What are the main features of the clean collection method?

• A) The bank controls both the commercial and financial documents only delivers them when the buyer makes payment

• B) The seller sends the goods and commercial documents directly to the buyer, the bank only handles the financial documents

• C) The buyer must open a letter of credit with his bank to ensure payment.

• D) Payment is made entirely in cash at the time of delivery.

Multiple Choice

Question 8: In which scenario would an exporter most likely choose a Clean Collection over a Documentary Collection?

• A) When dealing with a new, unverified buyer in a politically unstable country.

• B) When shipping high-value, perishable goods to an unknown market.

• C) When the transaction involves a long-standing, highly trusted business partner

• D) When the importer requires a long credit period and bank financing.