​Consider an Importer That Issues a Promissory Note to an Exporter

question 32

Multiple Choice

​Consider an importer that issues a promissory note to an exporter to pay for imported capital goods over a period of five years. The exporter sells the note at a discount to a bank. This reflects:

• A) ​accounts receivable financing.
• B) ​forfaiting.
• C) ​factoring.
• D) ​a letter of credit.

---

Definitions:

Specification Limits

Predetermined boundaries or limits within which a product, result, or characteristic must fall to be considered acceptable for its intended purpose.

Random Variation

Fluctuations in data or observations that lack a predictable pattern and arise from random factors.

Random Cause Variation

Variability in data or processes that is caused by numerous uncontrollable factors, observed in a natural, random spread of results.

Centerline

In the context of statistical process control charts, this is the median line around which the plotted values are expected to vary.