Tuf-Enuf Steel, a Rapidly Growing Company, Is Looking to Buy

question 102

Multiple Choice

Tuf-Enuf Steel, a rapidly growing company, is looking to buy a large industrial furnace from Thailand that is expected to cost $3 million. The exporter wants Tuf-Enuf Steel to produce a letter of credit, but its CFO is reluctant to do so. What disadvantage of letter of credits is the likely reason for the CFO's reluctance?

• A) It results in the importer losing control over the process of trading.
• B) It reduces the exporter's level of trust in the importer.
• C) It reduces the importer's ability to borrow funds for other purposes.
• D) It requires the importer to repay the loan even before the merchandise is sold.
• E) It is not issued at the importer's request

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Definitions:

Self-Restraint

The ability to control impulses and delay immediate gratification for longer-term benefits.

Group Discussion

A structured conversation or meeting focused on a particular topic, where multiple individuals share ideas, suggestions, and opinions.

Affirmative Action

Policies or measures that aim to increase opportunities for historically disadvantaged groups by considering those very characteristics (such as race or gender) in decisions like employment and education.

Same-Sex Unions

Legal or socially recognized partnerships between two individuals of the same sex, akin to marriage.