Question

An executive corporate officer can normally conduct ordinary business transactions without first obtaining the corporation's written authority. a. True O b. False

Answer 1

True. Cooperative officer can conduct ordinary business transaction without the written authority. There is a chance for interest conflict with corporation when there is direct or indirect interest. These cooperative executives have the right to interfere in any activities which is related to the business system. Most of the final decisions were signed by these officers. They tried to protect the interest of other board members in the system.
Letter of credit in international sale has the obligations to police the underlying the contract. The letter of credit ensures that the payment will received in the sale. This will reduce the risk of non payment delivery system through replacing the risk of buyers by banking system. The seller is responsible to calculate the payment date for the goods. These documents were based on certain contracts. If there is a delay in the payment the seller grants credit to the buyer.
True. The identification process shows the rights of the parties for selling the contracts. During this time, the contract is signed which include the rights and responsibilities of both the parties. There are certain conditions regarding the business deal expressed through this identification.