When a Small Business Forges an Agreement with a Bank

question 17

Multiple Choice

When a small business forges an agreement with a bank that consents to honor a draft or other demand for payment after goods are delivered internationally, the firm receives a

• A) international invoice.
• B) bill of lading.
• C) letter of confirmation.
• D) letter of credit.

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Definitions:

Verbal Understandings

Agreements or terms reached through spoken communication, which may not be formally documented in writing.

Existing Business

A company or enterprise that has been operational for some time, as opposed to a newly established entity.

Past Business Contracts

Previous agreements or legal obligations between parties in a business context.

Customers

Individuals or organizations that purchase goods or services from a company.