Pro-Racquets Has a Bill of Lading for an Order of 10,000

Multiple Choice

Pro-Racquets has a bill of lading for an order of 10,000 tennis rackets it will be exporting to a foreign distributor. The company takes this bill of lading to the local bank and uses it to obtain funds to hold the company over until final payment is received from the foreign distributor. In this situation, the bill of lading is being used as

A) collateral.
B) licensing.
C) a draft.
D) a contract.
E) a receipt.