The open account method of payment works well if the buyer is well established, has a long and favorable payment record, or has been thoroughly checked for being creditworthy.

Question

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The statement is true, as the open account method of payment is based on credit, and therefore relies on the buyer's creditworthiness and payment history. A buyer with a good payment record or established credit is less likely to default on their payments, making the open account method a viable option.

The Open Account Method of Payment Works Well If the Buyer