Advantages of a bill of exchange.
The bill of exchange is a very important and useful document in modern commerce. Its main advantages are summarized below.
(1) Written verification of debt. The accepted bill of exchange shows the amount owned by a person and the exact date of payment. In case of delay or nonpayment the payment can be enforced on him in the court of law.
(2) Negotiable Instrument. The bill of exchange is a negotiable instrument. Being transferable it enables increase in commercial transactions.
(3) Discounting facility. The b of exchange being a negotiable instrument enables the payee or holder to obtain prompt cash by discounting it with a bank. The banks consider the discounting of bills of exchange as a very useful investment.
(4) Easy transfer of money. With the help of bill of exchange the money can be easily transferred merely by signing and delivery of the bill. The risk involved in the actual transfer of money is thus avoided.
(5) Self liquidating credit. A businessman can easily purchase goods by promising to pay a specified sum at a determined future time to the seller. Before the maturity of the bill he can arrange to sell the goods in the market and the proceeds can be used for meeting the obligation A bill of exchange is thus a self liquidating credit.
(6) Facilitates foreign trade. The bill of exchange facilitates settlement of international obligations. It thus helps in promoting trade between nations.
One of the greatest talk-shows host Ellen DeGeneres and Emmy award-winner was created in Metairie, La. More >>
In these times of an uncertain economy, one must not only rely solely on their day jobs because these day jobs can be taken away from workers in a blink of an eye. The bad economy has forced employers to cut staff just to make ends meet, while other companies have decided to declare bankruptcy, thu More >>
In a warehouse, it is essential to make optimum use of the space available so that maximum items can be stored giving as much free space as possible. More >>
The infinity rings usually consist of four to eight separate pieces that will be joined together to form an interwoven knot. More >>
The used cars profession is all time on the top because of the car fanatics who sell off their cars rapidly to have better exchange, as well as segment due to the financial recession that's creating new cars appear prodigally costly to budget aware folks. More >>
Objectives of Business means the purpose for which the business is established. It is generally believed that the main objective of business is ta make profit and avoid loss. More >>
Barter System - Barter System is that system in which goods are exchanged for goods - Barter System More >>
Functions of Money - Functions of Money as a Medium of Exchange, Measure of Value, Deferred Payment, Store of Value - Functions of Money More >>
The importance of business is that it provides products or services to customers. More >>
The partners of a firm are broadly divided into three main categories. General Partners, Special Partners and Other Partners. More >>