What is aims and objectives of bill of exchange
Answers
Answer:
Bill of exchange is a written order drawn in favour of a person who is to be paid a certain amount by the person on whom it is drawn on a specified date.
The person on whom it is drawn is Drawee and the person making it is Drawer.
Explanation:
The aims and objectives of bill of exchange is as follows:-
i)It allows purchase and sale of goods on credit basis on a mere compliance of accepting the bill to pay later.
ii)It serves as a tool for easy transferability of money by endorsing or discounting the bill at the time of need.
iii)It focusing or objectifies to endorse business as well as build relationships and community.
iv)The bill also serves as a conclusive proof of a transaction happened and thus payment is or sure to be received by the one having the bill.