BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A sight draft is a payment document used in international trade whereby a buyer accepts shipped goods and agrees to pay the seller immediately upon delivery. As a type of bill of exchange, sight drafts are utilized in international trade to facilitate short-term financing between importers and exporters.

Detailed explanation-2: -A written demand requesting payment under a letter of credit presented by the beneficiary of the letter of credit to the issuing bank. The time it takes for a beneficiary to receive payment under the letter of credit can vary and is stated in the letter of credit.

Detailed explanation-3: -The most common bill of exchange today is a check drawn on a bank account: the drawer is the owner of the account and the drawee is the bank. A bill of exchange is a negotiable instrument that may be payable on demand (a sight draft) or on a fixed future date (a time draft).

Detailed explanation-4: -A time draft is a type of payment document whereby a buyer accepts shipped goods and agrees to pay the seller at a specified future date. It is a type of short-term credit used to finance international transactions. A time draft is also a guaranteed payment to the seller by an issuing bank.

Detailed explanation-5: -When the drawee of a time draft is the buyer, the accepted draft becomes known as a trade acceptance to distinguish it from a bankers’ acceptance, a time draft drawn on and accepted by a bank. The accepted draft, similar to a promissory note, represents money owed by one party to another party.