In an auction, a third-party ____ service can be used to hold the buyer's payment until he or she receives and is satisfied with the purchased item.
A)insurance
B)risk management
C)escrow
D)guarantee

Question

Quizplus · Accepted Answer

An escrow service is used as a neutral third-party to hold funds until both parties have fulfilled their obligations in a transaction. In an auction, the buyer's payment can be held in escrow until they receive and approve the purchased item before releasing the funds to the seller. This helps to ensure that both parties are protected and satisfied with the transaction. Insurance and risk management may provide coverage for potential issues in a transaction, but they do not act as a neutral intermediary. A guarantee may provide certain assurances or promises, but it does not necessarily involve holding funds in escrow.

In an Auction, a Third-Party ____ Service Can Be Used