Correspondent Bank refers formal relationships which is established between an overseas bank and a domestic bank to facilitate international banking transactions.
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- Statutory Audit
Statutory Audit by law, certain companies need to have their accounts audited by suitably qualified accountants. This is called a statutory audit.
- Shiftability theory
Shiftability theory is developed in 1918 by M.G Mouton and published on his article named ‘Commercial banking and capital formation.
- Senior Debt
Senior Debt is debt which, in the event of bankruptcy, must be repaid before subordinated debt receives any payment.
- Cumulative Dividends
Cumulative Dividends are a feature of preferred stock that requires all past dividends on preferred stock to be paid before any equity dividends
- Acquisitions of existing operations
Firms frequently acquire other firms in foreign countries as a means of penetrating foreign markets.
- Free On Board [FOB]
Free On Board [FOB] is shipping term, which applies, when the goods are placed on board a ship by the seller at the port of shipment
- Documents against acceptance (D/A)
Documents against acceptance (D/A) is the exporter draws a term bill on the overseas buyer and lodges it, together with shipping