Transportation and payment of IBT Flashcards
What is not a type of holder of a bill of exchange?
1) Holder for future course
2) Holder in due course.
A Bill of exchange is negotiable
True
False
True
A Bill of exchange is Transferable
True
False
True
Which instrument used in international business transactions is most appropriate to use where there is a high level of risk to the seller that they will not be paid by the buyer?
A letter of credit
It provides the most security for the seller as it promises that if the appropriate documents are presented to the bank the seller will receive payment.
What are the features of a Letter of Credit?
1) It is an autonomous transaction.
2) It provides security for the buyer.
3) It provides security for the seller.
What is a letter, issued by a parent company to a potential creditor of one of its subsidiaries that acknowledges the parent company’s approval of the subsidiary’s attempt to raise finance, known as?
A Letter of Comfort
Under the UN Convention on International Bills of Exchange and International Promissory Notes, what is the name of the process whereby a bill of exchange may be presented for payment by a different party than the one originally intended?
Endorsement
Endorsement allows a bill of exchange to be presented for payment by a party other than the original payee.
What is not a roll of a Bill of Lading?
doesn’t provide evidence that intercoms have been complied with
Under the UN Convention on International Bills of Exchange and International Promissory Notes, what is the person who is making the payment known as?
Drawer
Under the UN Convention on International Bills of Exchange and International Promissory Notes, what is the person who receives the payment known as?
Payee
Which type of letter of credit is used where there are regular shipments of the same commodity to the buyer?
Revolving
What is lien/encumbrance?
The legal right to possess something as a security interest
What do intellectual properties include?
- trade marks
- patents
- copyright
