The possible payment methods are

Letter of Credit

Open Account

Pre ~Payments

Based on the scenario select the most appropriate method and answer the questions accordingly

J & Sons Pty manufactures designer furniture from Durban. After participating in an exhibition 2 years ago, a new giant furniture shop in Italy would like to import some of the furniture with modification to suit the preference of the intended market. The overseas company called early January 2022 that they would like to place an order for furniture worth R1 200 000. Based on this scenario answer the questions that follow. Your answers should refer to the scenario given. a)For the selected appropriate payment method, briefly examine how the payment option differs from the other payment options available.[6] b. Critically evaluate three factors that can be used to qualify the suitability of the selected payment method. [9] c. Identify and discuss the risks that relate to the exporter and the importer under this method [5]