Question

What are the disadvantages of Bills of Exchange

Answer 1

Answer:

Disadvantages of bills of exchange are as under:-

1)The bills of exchange are for short term service this not good option for banking services.

2)If bills of exchange are not accepted then it is an additional burden on the person who was drawn it.

3)The discount allowed is also like an additional cost.

4)The drawee is liable to pay the bill in time as the date of payment is fixed.

5)Promissory notes are only used in home reading business.

hope it helps..