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:

Splitting

In chemical terms, it refers to the division of a spectral line or a magnetic resonance signal into several components, often due to the interaction between different nuclei or external fields.

NMR Spectrum

A chart displaying the different frequencies at which nuclei in a molecule resonate in a magnetic field.

Business Planning

The detailed strategy outlining the roadmap for a business’s growth, operational, and financial objectives.

Vision

A forward-looking statement or idea that outlines what an organization or individual aspires to achieve in the future.