Which of the Following Can Be Exercised Only When Presented

question 29

Multiple Choice

Which of the following can be exercised only when presented with specified shipping documents?

• A)Documentary drafts
• B)Letter of credit
• C)Airway bill
• D)Bill of lading

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Definitions:

Liquidation

The process of winding up a company's operations and distributing its assets to claimants, often during insolvency.

Noncash Assets

Resources that cannot be quickly turned into cash or are non-liquid, like land, machinery, and intellectual property rights.

Income Sharing

An arrangement where profits or revenues are distributed among stakeholders, partners, or employees, based on a predefined formula.

Gain (Loss)

The financial result that occurs when the selling price of an asset exceeds (or is less than) its purchase price.