Bills of exchange definition features advantages and disadvantages
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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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