What are the consequences of not obtaining a letter of credit?
What will be an ideal response?
When a buyer and seller enter into a contract and the buyer agrees to obtain a letter of credit (or a seller agrees to obtain a standby letter of credit), the consequences of failure to do so depend on whether the letter was (1) a condition precedent to the formation of the contract or (2) a condition for the performance of the contract.
In the first case, there will be no contract and consequently no breach. In the second, because the contract already exists, the failure to obtain a letter of credit will be a breach that will entitle the injured party to sue for damages.
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If a company has excess capacity, the most it would pay for buying a product that it currently makes would be the ________
A) total variable cost of producing the product B) full cost of producing the product C) total cost of producing the product D) business function cost of the product
Which type of qualitative interview works best when there is a need to stimulate greater depth and detail of discussion?
A) Personal interviews B) Focus groups