What is the purpose of a letter of credit?

A. It states that the bank will pay a specified sum of money to a beneficiary on presentation of particular, specified documents.
B. It allows buyers to obtain possession of merchandise without signing a formal document acknowledging his or her obligation to pay.
C. It is a document written by an exporter instructing an importer to pay a specified amount of money at a specified time.
D. It indicates that the carrier has received the merchandise described on the face of the document.
E. It serves as a receipt, a contract, and a document of title.


Answer: A

Business

You might also like to view...

Dwight, the general manager of a hotel, knows that one of his housekeeping employees has a serious substance-abuse issue. Dwight knows that because of the seriousness of the issue he needs to talk with the employee. However, his assistant manager asks Dwight if he would like her to deal with it. Dwight knows this is not the best option, but he agrees, knowing it is the easy way out. Dwight's decision is an example of

A. relaxed avoidance. B. relaxed change. C. defensive avoidance. D. panic. E. intuition.

Business

Shipping terms of_____________mean that the buyer pays shipping costs

Fill in the blank(s) with correct word

Business

The trial close allows the salesperson to determine whether the:

A. salesperson should use one-way communication. B. salesperson should answer any objections. C. salesperson should use a memorized sales presentation. D. salesperson will meet his/her sales quota. E. prospect likes the features and benefits of the product.

Business

Food product manufacturers are required to list the number of calories at the top of the nutrition panel. Posting calorie information is an example of meeting the ________ requirements of labeling.

A. customer B. marketing C. industry D. legal E. aesthetic

Business