What does C.B.D. refer to in business transactions?

The term C.B.D. in business transactions refers to "Collect before delivery." This concept indicates that a seller requires payment to be collected before the goods or services are delivered to the buyer. This practice is commonly employed in various industries to mitigate the risk of non-payment or defaults after the transaction has occurred.

In the context of business transactions, ensuring that payment is received upfront can help maintain cash flow and minimize financial risk for the seller. This is particularly important in scenarios where the seller is uncertain about the buyer's creditworthiness or where the seller is making a large investment in inventory or production prior to the sale.

Understanding the implications of each option provides clarity on the function of C.B.D. as it pertains to financing and the balance of risk in transactions. Other terms like "cash before delivery" or "checks before delivery" may represent different payment arrangements, but the specific phrasing of "Collect before delivery" aligns precisely with the definition of C.B.D.