BUSI 3250 STUDY EXAM 2026 QUESTIONS AND
ANSWERS SURE A+
✔✔A bill of lading issued by an air carrier as proof as the shipment was made -
✔✔Airway bill
✔✔Before opening a letter of credit a buyer will want an invoice. Buyer determines what
documents are needed for their bank, then letter of credit created. Buyer's bank issues
a letter of credit. - ✔✔true
✔✔Pro forma invoice - ✔✔Exporter's formal quotation
✔✔Contains a description of the merchandise, price, delivery time, method of shipping,
terms of sale, and points of exit and entry - ✔✔Pro forma invoice
✔✔may be requested if political and commercial risks are high - ✔✔export draft
✔✔An unconditional order drawn by the seller that instructs the buyer to pay the draft
on presentation (sight draft) or at an agreed future date (time draft); Must be paid before
- ✔✔export draft
✔✔export draft must be paid before - ✔✔the buyer receives shipping documents
✔✔A confirmed LOC guarantees payment to - ✔✔the seller; No guarantee from a
documentary/export draft
✔✔offering credit though exporters prefer L/C - ✔✔export financing
✔✔Factoring - ✔✔Sale of an exporter's accounts receivable on ordinary goods, with the
balance of the payment due upon delivery or soon after
✔✔Factoring allows seller to be more competitive by - ✔✔selling on open account
rather than by a more costly letter of credit
✔✔Factoring protects against - ✔✔bad debt and political risk
✔✔how many days are factoring terms? - ✔✔less than 180 days
✔✔Sale of an exporter's accounts receivable on capital goods, commodities, and other
high-value goods. - ✔✔Forfaiting
✔✔For forfaiting, payment due at least 180 days out up to - ✔✔5 years
, ✔✔Provides direct loans to foreign buyers of US exports and can be make up to 85% of
the value of goods. - ✔✔US Export-Import Bank
✔✔US Export-Import Bank - ✔✔The principal government agency that provides loans,
guarantees, and insurance programs to support U.S. exporters
✔✔Offers U.S. investors in developing countries insurance against expropriation,
currency inconvertibility, and damages from wars and revolutions - ✔✔Overseas Private
Investment Corporation (OPIC)
✔✔True or False: No import duties need be paid while goods are in the Foreign Trade
Zones (FTZ). - ✔✔TRUE
✔✔FTZs help - ✔✔stimulate trade - duty free areas - reduce effect of customs
restrictions
✔✔______ FTZs in US - ✔✔186
✔✔over __________ FTZs are in existence with 1,000 implemented over the past 5
years (August 2019) and expect at least 500 more to be established in the next few
years - ✔✔5,400
✔✔Foreign Freight Forwarders - ✔✔Act as agents for exporters
✔✔Prepare documents, book space with carriers and will supply marine insurance if
asked - ✔✔Foreign Freight Forwarders
✔✔"export traffic department" - ✔✔
✔✔number of documents needed can be as many as ___ for Foreign Freight
Forwarders - ✔✔8 (or more)
✔✔U.S. Department of Commerce form used to control export shipments and record
export statistics - ✔✔Shipper's Export Declaration (SED)
✔✔Gives title of shipment to a specified party - ✔✔Export Bill of Lading
✔✔Export bill of lading serves three purposes: - ✔✔1.Contract for carriage between
shipper and carrier.
2.Receipt from the carrier for the goods shipped.
3.Certificate of ownership.
ANSWERS SURE A+
✔✔A bill of lading issued by an air carrier as proof as the shipment was made -
✔✔Airway bill
✔✔Before opening a letter of credit a buyer will want an invoice. Buyer determines what
documents are needed for their bank, then letter of credit created. Buyer's bank issues
a letter of credit. - ✔✔true
✔✔Pro forma invoice - ✔✔Exporter's formal quotation
✔✔Contains a description of the merchandise, price, delivery time, method of shipping,
terms of sale, and points of exit and entry - ✔✔Pro forma invoice
✔✔may be requested if political and commercial risks are high - ✔✔export draft
✔✔An unconditional order drawn by the seller that instructs the buyer to pay the draft
on presentation (sight draft) or at an agreed future date (time draft); Must be paid before
- ✔✔export draft
✔✔export draft must be paid before - ✔✔the buyer receives shipping documents
✔✔A confirmed LOC guarantees payment to - ✔✔the seller; No guarantee from a
documentary/export draft
✔✔offering credit though exporters prefer L/C - ✔✔export financing
✔✔Factoring - ✔✔Sale of an exporter's accounts receivable on ordinary goods, with the
balance of the payment due upon delivery or soon after
✔✔Factoring allows seller to be more competitive by - ✔✔selling on open account
rather than by a more costly letter of credit
✔✔Factoring protects against - ✔✔bad debt and political risk
✔✔how many days are factoring terms? - ✔✔less than 180 days
✔✔Sale of an exporter's accounts receivable on capital goods, commodities, and other
high-value goods. - ✔✔Forfaiting
✔✔For forfaiting, payment due at least 180 days out up to - ✔✔5 years
, ✔✔Provides direct loans to foreign buyers of US exports and can be make up to 85% of
the value of goods. - ✔✔US Export-Import Bank
✔✔US Export-Import Bank - ✔✔The principal government agency that provides loans,
guarantees, and insurance programs to support U.S. exporters
✔✔Offers U.S. investors in developing countries insurance against expropriation,
currency inconvertibility, and damages from wars and revolutions - ✔✔Overseas Private
Investment Corporation (OPIC)
✔✔True or False: No import duties need be paid while goods are in the Foreign Trade
Zones (FTZ). - ✔✔TRUE
✔✔FTZs help - ✔✔stimulate trade - duty free areas - reduce effect of customs
restrictions
✔✔______ FTZs in US - ✔✔186
✔✔over __________ FTZs are in existence with 1,000 implemented over the past 5
years (August 2019) and expect at least 500 more to be established in the next few
years - ✔✔5,400
✔✔Foreign Freight Forwarders - ✔✔Act as agents for exporters
✔✔Prepare documents, book space with carriers and will supply marine insurance if
asked - ✔✔Foreign Freight Forwarders
✔✔"export traffic department" - ✔✔
✔✔number of documents needed can be as many as ___ for Foreign Freight
Forwarders - ✔✔8 (or more)
✔✔U.S. Department of Commerce form used to control export shipments and record
export statistics - ✔✔Shipper's Export Declaration (SED)
✔✔Gives title of shipment to a specified party - ✔✔Export Bill of Lading
✔✔Export bill of lading serves three purposes: - ✔✔1.Contract for carriage between
shipper and carrier.
2.Receipt from the carrier for the goods shipped.
3.Certificate of ownership.
