Management 411 Test Banks Questions and Answers

Forfaiting - -A means of financing an international sale in which an exporter collects a series of drafts from the importer and then sells them. -Purchasing Card - -A credit card used by companies to make small purchases, and that can be used in international transactions -Bill of Exchange or Draft - -A promissory note in which an importer formally recognizes its debt to the exporter -Open Account - -A method of payment in which the exporter sends an invoice to the importer along with the goods and expects the importer to pay within a reasonable amount of time -Documentary Collection - -A method of payment in which an exporter enlists the help of a bank in the importer's country to collect payment from the importer -Factoring - -A means of financing international receivable accounts, by which a firm asks a factoring company to advance funds on the receivable -TradeCard - -A proprietary process that combines payment and documents and facilitates international transactions -Cash in Advance - -A method of payment in which an importer has to pay the exporter before the exporter ships the goods -Letter of Credit - -A method of payment in which the bank promises to pay the beneficiary (the exporter) on behalf of the applicant (the importer), as long as the exporter has provided the requested documents