ENTREPRENEURSHIP

ENTREPRENEURIAL OPERATIONS

SUPPLY CHAIN MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Identify the transport document being used. “Used when a bank undertakes to pay for a shipment, provided the exporter submits the required documents
A
Export/Import licence
B
Bill of exchange
C
Documentary bill
D
Certificate of origin
E
Documentary credit
Explanation: 

Detailed explanation-1: -A Letter of Credit or Documentary Credit is a promise by a bank on behalf of the buyer (applicant/importer) to pay the seller (beneficiary/exporter) a specified sum in the agreed currency, provided that the seller submits the required documents by a predetermined deadline..

Detailed explanation-2: -Letter of Credit L/c also known as Documentary Credit is a widely used term to make payment secure in domestic and international trade. The document is issued by a financial organization at the buyer request.

Detailed explanation-3: -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. 20.1.

Detailed explanation-4: -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.