Which of the Following Is NOT an Advantage to L/C

question 21

Multiple Choice

Which of the following is NOT an advantage to L/C?

• A) eliminates credit risk
• B) reduces uncertainty
• C) stabilize production
• D) advance payment

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Definitions:

Conglomerate

A large corporation formed by the merger of separate and diverse firms, focusing on a wide range of business activities and markets.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, and other assets.

Vicarious Liability

A legal doctrine holding an individual or entity liable for the actions of another, based on the relationship between them, such as employer-employee.

Ultra Vires Rule

A legal doctrine that acts performed beyond the scope of a corporation's or entity's powers are invalid.