Multiple choice

Which of the following is not an advantage of an Accommodation Bill?

  1. Drawn without any consideration

  2. Legal action cannot be restorted

  3. Financial assistance received

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 It is a major disadvantage of accommodation bill. As accommodation bills are drawn in absence of any consideration, it is not a proof of debt. It is not easy to maintain a suit for recovery of the amount. In trade bills, legal action can be take easily, if the bill is dishonoured.

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