The Major Advantage of a Letter of Credit to the Exporter

question 29

True/False

The major advantage of a letter of credit to the exporter is that the exporter does not receive any funds until the documents have arrived at a local port or airfield.

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, which is considered an operating expense.

Net Capital Spending

This term refers to the total amount a company spends on acquiring or maintaining fixed assets, minus any sales of these assets, over a given period.

Earnings Per Share

A financial metric that measures the amount of a company's profit attributable to each outstanding share of common stock, calculated as net income divided by the number of outstanding shares.

Shares Of Stock

Equal units of ownership in a corporation, representing a claim on part of the corporation’s assets and earnings.