Which of the Following Is NOT True About Forfaiting

question 24

Multiple Choice

Which of the following is NOT true about forfaiting?

• A) The exporter is responsible for the quality of delivered goods.
• B) Exporter receives an unconditional cash payment at the time of the transaction.
• C) The exporter sells bank-guaranteed promissory notes at its face value.
• D) The political and commercial risk is carried by the guaranteeing bank.

Identifying the importance of considering risk and how it is accounted for in project evaluation.

Distinguishing between sunk costs and relevant costs in project evaluation.

Understanding the concept of externalities and their impact on project cash flows.

Recognizing the importance of using appropriate depreciation methods and understanding their tax implications.