Identify the transport document being used. This gives the bank the right to take possession of goods if the bill of exchange is not honoured when payment becomes due.

SUPPLY CHAIN MANAGEMENT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Identify the transport document being used. “This gives the bank the right to take possession of goods if the bill of exchange is not honoured when payment becomes due.”

A	Export/Import licence
B	Bill of exchange
C	Documentary bill
D	Bill of lading
E	Documentary credit

Explanation:

Detailed explanation-1: -A Letter of Credit is an arrangement whereby Bank acting at the request of a customer (Importer / Buyer), undertakes to pay for the goods / services, to a third party (Exporter / Beneficiary) by a given date, on documents being presented in compliance with the conditions laid down.

Detailed explanation-2: -Advantages of Bill of Exchange Legal Document-It is a legal document, and if the drawee fails to make the payment, it will be easier for the drawer to recover the amount legally.

Detailed explanation-3: -Irrevocable (and Revocable) The opening introduction referred to a written undertaking given by an issuing bank. Confirmed. Silent Confirmation. Revolving. Red & Green Clause. Transferable. Back-to Back: Standby Letter of Credit. 13-Nov-2019

There is 1 question to complete.

ENTREPRENEURSHIP

ENTREPRENEURIAL OPERATIONS

SUPPLY CHAIN MANAGEMENT