Question

Main disadvantages of Bill of exchange

Answer 1

Answer:

Disadvantages of bill of exchange are as below:-

• The bill of exchange are for short term services so this is not good option for bank services.
• If bills of exchange are not accepted then it is an additional burden on the person who was drawn it.
• The discount allowed is also like an additional cost.
• The drawer is liable to pay the bill in time as the date of payment is fixed.
• Promisory notes are only used in home reading business

Hope it will help you........