Zencorp, a steel manufacturing company, exports its products to Madivis Homes and gets paid by an open account agreement. Given the scenario, which of the following statements is true?
A) The payment method is the least safe for Madivis Homes.
B) The payment method creates an unfavorable balance of value for Madivis Homes.
C) The payment method makes Madivis Homes a lender to Zencorp.
D) The payment method enables Madivis Homes to purchase goods on credit.
Correct Answer:
Verified
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