Business Studies, asked by MaryAkins6735, 11 months ago

Bills of exchange definition features advantages and disadvantages

Answers

Answered by charu536
0

Answer:

definition - bill of exchange can be understood as a written negotiable, that carries an unconditional order to pay specified sum of money to a designated person or the holder of the instrument as directed in the instrument by the maker. the boe is either payable of demand or specific term.

features:

an instrument which a creditor draw upon his debtor.

it carries an absolute order to pay a specific sum.

advantage:

legal relationships

easy transferability

disadvantage:

it lead to credit sales.

it may lead to business loss when a person lost the bill.

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