In which of the two forms of payment does the exporter not give up control of the merchandise until paid: a documents against payment collection or a documents against acceptance collection?
What will be an ideal response?
Answer: Under a D/P collection, the importer must pay the amount of the sight draft to the collecting bank before the documents are released. When the funds are received, they are transmitted to the remitting bank for payment to the exporter. The exporter consequently does not give up control of the merchandise until payment is received by the collecting bank.
Under a D/A collection, the exporter extends credit to the importer in the following way. The collecting bank presents a time draft to the importer, who must sign it, date it, and write accepted across it. The shipping documents are then released to the importer.
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A refrigerator has a mean time between failures of 314 hr and mean time to repair of 17 hr. In this case, the availability is ______.
A. 0.949 B. 0.930 C. 0.980 D. 0.930
Which of the following represents the number of sales dollars generated by each dollar invested in assets?
a. Asset turnover b. Assets invested c. Profit margin d. Operating income
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What will be an ideal response?
Sunshine Corp. announced a 2-for-1 stock split of its common stock, which currently is selling for $10 per share. Currently, 200,000 shares of stock are outstanding. What should be the market price per share of the stock immediately after the split is initiated?
A. $10 B. $15 C. $5 D. $20 E. $50