Which of the Following Functions Does a Draft NOT Perform

question 13

Multiple Choice

Which of the following functions does a draft NOT perform?

• A)to provide written evidence,in clear and simple terms,of a financial obligation
• B)to enable both parties to potentially reduce their costs of financing
• C)to provide a negotiable and unconditional instrument
• D)to offer the exporter greater safeguards than a letter of credit in securing repayment from the importer

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Definitions:

Takeover Bid

An offer made to acquire a controlling interest in a company, often against the wishes of its management.

General Agents

Representatives of insurance companies who have the authority to act on behalf of these companies in various transactions.

Corporate Officers

Individuals elected or appointed to manage the day-to-day operations and strategic direction of a corporation, such as CEOs, CFOs, and COOs.

Derivative Suit

A lawsuit brought by shareholders on behalf of the corporation.