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AFP Certified Treasury Professional CTP Question # 271 Topic 4 Discussion

AFP Certified Treasury Professional CTP Question # 271 Topic 4 Discussion

CTP Exam Topic 4 Question 271 Discussion:
Question #: 271
Topic #: 4

U.S.-based manufacturing Company XYZ is looking to deliver finished goods to ABC Company in a developing nation. The credit department wants to ensure collectability and has asked the treasury department for guidance. The desired solution may impact days sales’ outstanding but will have the lowest credit risk to Company XYZ. What will treasury recommend?


A.

A standby letter of credit


B.

A draft/bill of lading


C.

Extended trade terms


D.

A consignment agreement


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