These are ACCA F4 Global (CL/LW) Corporate and Business Law MCQs for Part-C of the Syllabus “Transportation and payment of international business transactions”.

These multiple-choice questions (MCQs) are designed to help ACCA F4 Global students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

Please note:

Students should not attempt these MCQs until they have studied the entire chapter.
All questions are compulsory, so please do not skip any.

We hope that these MCQs will be a valuable resource for students preparing for the ACCA F4 Global (CL/LW) exam.

INFORMATION ABOUT THESE CBE MCQs Test/Quiz

Course:	ACCA – Association of Chartered Certified Accountants
Fundamental Level:	Applied Skills
Subject:	Corporate and Business Law
Paper:	F4 Global – CL/LW
Chapter:	Transportation documents and means of payment
Chapter Number:	07 of the Practice and Exam Kit
Syllabus Area:	C – “Transportation and payment of international business transactions”
Questions Type:	CBE MCQs
Exam Section:	Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part C of the Syllabus; “Transportation and payment of international business transactions” of ACCA F4 Global (CL/LW) Corporate and Business Law Module.

Time

These MCQs are not time-bound. Take your time and solve them without stress. Pay proper attention and focus. Do not rush or hesitate.

Result

Students will get their F4 Global CBE MCQs Test results after they finish the entire test. They will also be able to see the correct and incorrect answers, as well as explanations for the incorrect questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “( select all those which are correct/ or incorrect)“.
Drop-down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

Keywords

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F4 (GLO) - Chapter 07 - Part C - MCQs

Course: ACCA - Association of Chartered Certified Accountants
Subject: F4 (LW/CL) (GLOBAL) - Corporate And Business Law
Syllabus Area: C - Transportation and payment of international business transactions
Chapter in Kit: 07 - Transportation documents and means of payment
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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1 / 15

Which of the following parties would issue a bill of lading?

Shipper

Seller

Carrier

2 / 15

Which of the following is a type of bill of lading?

Revolving bill of lading

Negotiable bill of lading

Endorsed bill of lading

3 / 15

Which of the following statements is correct regarding the UNCITRAL Model Law on International Credit Transfers?

The sender and the beneficiary must be different parties

The sending and receiving bank are different branches of the same banking organisation

The sender and the sender's bank are known as the originator

4 / 15

Which of the following statements is correct regarding the UNCITRAL Model Law on International Credit Transfers?

The Model Law only applies to transfers that are only electronic in nature

The Model Law also applies to credit transfers made by entities that are not banks

The Model Law also applies to debit transfers

5 / 15

Under the UNCITRAL Model Law on International Credit Transfers, which of the following is an obligation of the sender?

To ensure funds are available for the sending bank to make payment to the receiving bank

To pay the receiving bank for the payment order when the receiving bank accepts it

To agree with the beneficiary the date that the credit transfer is to take place

6 / 15

Under the UN Convention on International Bills of Exchange and International Promissory Notes, what is the name of the process whereby a bill of exchange may be presented for payment by a different party than the one originally intended?

Transfer

Negotiation

Endorsement

7 / 15

Under the UN Convention on International Bills of Exchange and International Promissory Notes, when should a bill of exchange that is not payable on demand be presented for payment?

On the maturity date only

On the maturity date or one or two business days after only

Within 30 days of the maturity date

8 / 15

Which of the following instruments used in international business transactions is most appropriate to use where there is a high level of risk to the seller that they will not be paid by the buyer?

Bill of exchange

Bank transfer

Letter of credit

Letter of comfort

9 / 15

What is a letter, issued by a parent company to a potential creditor of one of its subsidiaries that acknowledges the parent company's approval of the subsidiary's attempt to raise finance, known as?

Letter of comfort

Letter of credit

Letter of support

Letter of endorsement

10 / 15

A bill of lading is a document used in the transport of goods that performs a number of roles.

Which is NOT a role of a bill of lading?

Provides evidence of or contains the contract of carriage

Provides evidence that Incoterms have been complied with

Provides evidence that the goods have been received by the carrier

Acts as a document of title to the goods being shipped

11 / 15

In a credit transfer made under the UNCITRAL Model Law on International Credit Transfers, if there is a delay at any stage, which of the following is true?

The bank causing the delay is liable to pay interest and damages

The bank causing the delay is liable to pay interest only

The transfer is cancelled and must commence again

The transfer must continue at the earliest possible time and no bank is held liable

12 / 15

Under the UN Convention on International Bills of Exchange and International Promissory Notes, what is the purchaser known as?

Drawee

Acceptor

Drawer

Payee

13 / 15

Under the UN Convention on International Bills of Exchange and International Promissory Notes. What is the person who receives the payment is known as?

Payee

Drawer

Acceptor

Drawee

14 / 15

Under the UN Convention on International Bills of Exchange and International Promissory Notes, a party may agree to take responsibility for ensuring a bill of exchange is paid.

What is the name given to such a party?

Payee

Guarantor

Acceptor

Drawee

15 / 15

Which type of letter of credit is used where there is a course of dealings between buyer and seller and a line of credit is required to be open at all times?

Back-to-back

Revolving

Revocable

Transferable