Final answer:
Credit approval is the critical event that must take place before goods are shipped to assure payment can be expected. It involves assessing the customer's creditworthiness to mitigate financial risk.
Step-by-step explanation:
Before goods can be shipped to assure that payment can be reasonably expected, a critical event that must take place is B) Credit approval. This involves the verification and assessment of the customer's ability to pay for the goods they are purchasing. The vendor or seller will usually review the customer's credit history and current financial status to determine if they are creditworthy. This step is crucial because it helps mitigate the risk of non-payment after the goods have been delivered.
Credit approval should not be confused with other steps in the order fulfillment process, such as determining the correct delivery address, matching shipping documents with sales invoices, or the receipt of a sales order. While these steps are also important components of the overall process, credit approval specifically addresses the financial risk associated with extending credit to the customer.