Commerce Questions and Answers
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
The functions of money do not include
store of value
medium of exchange
double coincidence of wants
means of deferred payment
Correct answer is C
The following are some of the functions of money
double coincidence of wants is a feature of barter system and a function of money.
A put option in the stock exchange is an option
to sell
not to sell
to buy
not to buy
Correct answer is A
A put or put option is a stock market device which gives the owner the right, but not the obligation, to sell an asset at a specified price by a predetermined date (the expiry or maturity) to a given party (the seller of the put).
which of the following documents is used when goods are being sent by a common carrier
delivery note
consignment note
advice note
credit note
Correct answer is A
A delivery note is a document accompanying a shipment of goods that lists the description, grade, and quantity of the goods delivered, but does not include the prices. Delivery note is a mandatory requirement for any shipping process to be initiated and completed in a systematic manner. It is compulsory that a delivery note accompanies a shipment.
The insurance policy taken to cover dishonesty of account personnel of an organisation is?
employers laibility
fidelity guarantee
life endowment
marine insurance
Correct answer is B
Fidelity guarantee insurance; An agreement whereby, for a designated sum of money, one party agrees to guarantee the loyalty and honesty of an agent, officer, or employee of an employer by promising to compensate the employer for losses incurred as a result of the disloyalty or dishonesty of such individuals. It is most often sought by companies where employees are more likely to cause financial loss because of their constant exposure to cash, stocks or other assets.
The reason for sending a proforma invoice to a potential customer is that it is?
an indication of the seller's willingness to grant credit
a polite way of telling the customer to return the goods
an invitation to the buyer to buy on hire purchase
a polite way of refusing to sell on credit
Correct answer is D
A proforma invoice is an estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. It notes the kind and quantity of goods, their value, and other important information such as weight and transportation charges.
A pro forma invoice is generally raised when the seller is ready for dispatching the goods but they want to ensure that the payment is being sent before dispatch.