What characteristics do open account arrangements and consignment arrangements have in common?

Question

Quizplus · Accepted Answer

Both open account arrangements and consignment arrangements involve the exporter relying on the importer's promise to pay at a specific time in the future. In an open account arrangement, the exporter ships the goods and invoices the importer, while in a consignment arrangement, the exporter sends the goods to the importer to sell on its behalf and only gets paid when the goods are sold. Both arrangements carry some degree of risk for the exporter, as they are dependent on the importer's ability and willingness to pay.

What Characteristics Do Open Account Arrangements and Consignment Arrangements Have