The ___________________ method of payment is best for the seller and risky for the buyer.

The cash in advance method is considered best for the seller because it ensures that they receive payment before delivering goods or services. This eliminates the risk of non-payment or delayed payment because the seller gets their money upfront, which can enhance cash flow and reduce potential losses associated with buyer defaults.

For the buyer, this method poses significant risks as they are required to pay fully before receiving the goods. If the seller fails to deliver as promised or if the goods do not meet the buyer's expectations, the buyer may have little recourse to recover their funds. Consequently, this arrangement can lead to a disadvantage for the buyer in terms of trust and negotiation power, especially when dealing with unfamiliar international partners.

In contrast, the other payment methods, such as open account and letter of credit, provide different balances of risk and benefit between buyers and sellers, often offering some protections for both parties.