How Does a Banker's Acceptance Help Create More International Trade

question 25

Essay

How does a banker's acceptance help create more international trade?

Differentiate between types of contracts (e.g., output and requirements contracts versus illusory promises).

Analyze the adequacy of consideration and its role in the enforceability of contracts.

Recognize the elements necessary for a binding contract, including bargained-for exchange and legal sufficiency.

Understand how promissory estoppel can create binding obligations in the absence of traditional consideration.

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Definitions:

Return on Assets Ratio

A financial metric used to evaluate a company's profitability relative to its total assets.

Earnings Per Share

Earnings per share (EPS) is a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Treasury Shares

Treasury shares are previously issued shares that have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Market Price

The current price at which an asset or service can be bought or sold in an open and competitive market.