Post Utme Crawford University 2025 Commerce Question 14

Practice objective / multiple choice question 14 from the 2025 Post Utme Crawford University Commerce examination.

Post Utme Crawford University 2025 Commerce Objective / Multiple Choice
Question 14 POST_UTME_CRAWFORD_UNIVERSITY • 2025 • COMMERCE • objective

A company exports goods worth ₦10 million to a foreign country. The company uses a letter of credit to secure payment. If the foreign buyer fails to pay, what is the company's recourse?

Answer Options

A. The company can sue the foreign buyer in their home country.
Correct Answer B. The company can claim the payment from the bank that issued the letter of credit.
C. The company can cancel the letter of credit and claim the payment from the foreign buyer.
D. The company can negotiate a new payment plan with the foreign buyer.
Correct Answer
B
Correct Option:
The company can claim the payment from the bank that issued the letter of credit.

About This Question

This is Post Utme Crawford University 2025 Commerce Question 14. It is one of the objective questions from the 2025 Post Utme Crawford University Commerce examination.

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