Which of the Following Is the Best Definition of Letter

question 255

Multiple Choice

Which of the following is the best definition of letter of credit?

• A) A written statement by a bank that money will be paid, provided conditions specified in the letter are met.
• B) Short-term financing in which the factor purchases all of a firm's receivables and forwards the proceeds to the seller as soon as they are collected.
• C) The time period between the acquisition of inventory and when cash is collected from receivables.
• D) Loan negotiated with banks for day-to-day operations.
• E) Costs that fall with increases in the level of investment in current assets.

Recognize how government agencies announce grant opportunities.

Assess the effect of government contracts on nonprofit responsiveness to government directives.

Identify strategies to simplify the grant process recommended by the Urban Institute.

Understand the regulations around combining government funds with private funds in nonprofit organizations.

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Definitions:

Estimated

Roughly calculated or approximated based on available information or data.

Planet

A celestial body orbiting a star or stellar remnant that is massive enough to be rounded by its own gravity, but not massive enough to cause thermonuclear fusion.

Social Justice

Concerned with creating a more just and equitable world.

Equitable

Characterized by fairness, justice, and impartiality in the treatment or recognition of all individuals.