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Explain the notion of economic exposure. How can economic exposure be minimized?
Negotiable Instruments
Financial documents, such as checks, drafts, or promissory notes, that guarantee the payment of a specified amount of money to a specific person or entity.
Agent
A person or entity authorized to act on behalf of another (the principal), in dealings with third parties.
Corporation
A legal entity recognized by law as separate from its owners, with its rights and liabilities, capable of conducting business, entering contracts, and owning assets.
Indorsers
Individuals or entities that sign a document (often a negotiable instrument like a cheque) on the back to signify their agreement to transfer title or to guarantee its terms.
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