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Anastaziya [24]
3 years ago
15

Suppose that an issuing bank pays on documents that are conforming to the requirements of the letter of credit, but the seller h

as shipped worthless goods to the buyer. Which of the following statements, if any, are true?
a) As long as the documents strickly comply with the letter of credit requirements, the bank will not have to reimburse the buyer
b) If there is fraud in the transaction, the bank will have to reinburse the buyer and seek its remedies against the seller
c) The strick compliance insulates the bank from liability, since it assures the bank that the underlying contract between the buyer and seller is entirely independent from the letter of credit contract
d) A and B
Business
1 answer:
AleksAgata [21]3 years ago
6 0

Answer:

a) As long as the documents strictly comply with the letter of credit requirements, the bank will not have to reimburse the buyer

Explanation:

A letter of credit refers to the letter in which the bank is made a guarantee to pay the amount to a particular person by compiling the specific conditions during the exporting of goods

Since in the question, it is given that the seller has shipped the goods that are worthless i.e of no use for the buyer so in this case,  the bank would not reimburse the buyer.

Therefore the correct option is A.

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The Coase Theorem states that
choli [55]

Answer:B. if transaction costs are​ low, private bargaining will result in an efficient solution to the problem of externalities.

Explanation:

The coarse theorem:

If there is a conflict between parties this will lead to an effecient results irrespective of who won the right to the property as long as the transaction cost related to the price negotiation is insignificant.

7 0
3 years ago
Fenland Co. plans to retire $120 million in bonds in five years, so it wishes to fund a savings account at the beginning of each
solniwko [45]

Answer:

240,000,000

Explanation:

Each year you would need to invest 240,000,000 into the saving account over a period of five years to get to the desired amount. If they are only putting in 12%of the retirement funds that would 14,400,000 and that would take about 8 years.

8 0
3 years ago
When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying
Umnica [9.8K]

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the distribution.

Heinz has launched a color ketchup product for toddlers called EZ Squirt. The product was available in compressible containers and was eventually discontinued by him in 2006.

After six years of creatively decorating food, the novelty wore off and a young fan of the whimsical Heinz grew tired of tattooing hot dogs with his tribal tattoos. The company has discontinued the EZ Squirt color due to declining sales.

Squeeze Bottles became so popular that Heinz eventually stopped making glass bottles, until 2011 when he released a limited edition bottle with his original label.

Learn more about distribution here: brainly.com/question/12892403

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6 0
10 months ago
Suppose you just won the state lottery, and you have a choice between receiving $3,500,000 today or a 20-year annuity of $250,00
xeze [42]

Answer: The correct answer is e). 3.67%

Explanation: An ordinary annuity is a series of payments made at the end of each period.

The formula for ordinary annuity is PV = PMT × ((1 - (1 + r) ^ -n)/ r)

Where; PMT = the periodic cash payment; r = the interest rate per period; n = the total number of periods and PV = present value.

Therefore; 3500000 = 250000×((1-(1+r)^-20)/r

This will give the rate as 3.67%

4 0
3 years ago
The following is a partial unadjusted Trial Balance.
PilotLPTM [1.2K]

Answer:

Supplies Expense         12500

Explanation:

<em>Bravo Unlimited</em>

<em>Adjustment Entry</em>

Date                          Particulars                     Debit           Credit

February 29          Supplies Expense         12500

                                      Supplies Account                       12500

( Opening bal+ purchases- Ending bal= Expense= 2000+ 12000- 1500= 12500

At the month end Supplies were used for $ 12500 and supplies on hand are $ 1500.

On 2nd Feb the supplies account totalled $ 14000 but $5000 supplies had been expensed  so the total amount of supplies used up is calculated by (Opening bal+ purchases- Ending bal= Expense) the formula given above.

5 0
3 years ago
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