May Ling Chin Has Had Poor Success in Collecting Monies

question 41

Multiple Choice

May Ling Chin has had poor success in collecting monies owed from clients in Hong Kong even though she understands that ins and outs of doing business with the Chinese there.In future arrangements she plans to pursue _____________ where,after offering the buyer a long-term financing deal,she will sell the account receivable to a Hong Kong bank and let them worry about collecting.She will not receive as much money as she would like but she will at least be assured of receiving a fair amount.

• A)letters of credit
• B)bills of exchange
• C)forfaiting
• D)consular invoicing
• E)express financing

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Definitions:

Subsidy

A financial aid or support extended by the government to an economic sector, business, or individual, often aimed at promoting economic and social policies.

Elasticity of Demand

An analysis of consumer demand's elasticity in relation to the pricing of a commodity.

Subsidy

Financial support extended by the government to an economic sector (or institution, business, or individual) with the aim of promoting economic and social policy.

Highly Elastic

Refers to a strong responsiveness of the quantity demanded or supplied of a good to a change in its price.