6. Commercial Policy Quiz

32 Questions | Total Attempts: 84

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6.  Commercial Policy Quiz - Quiz

This quiz is designed to test the candidate's knowledge of the Commercial Policy course.


Questions and Answers
  • 1. 
    Algypug's standard freight terms are?
    • A. 

      Ex-Works

    • B. 

      Delivered, duty paid

    • C. 

      FOB

  • 2. 
    Algypug's payment terms for standard products are?
    • A. 

      100% in advance

    • B. 

      Against delivery

    • C. 

      30 Days PDC

    • D. 

      90 Days LC

  • 3. 
    Algypug's payment terms for special products are?
    • A. 

      Against delivery

    • B. 

      30% advance, balance against delivery

    • C. 

      30 days PDC

    • D. 

      100% advance

  • 4. 
    It is never possible to give credit to customers.
    • A. 

      True

    • B. 

      False

  • 5. 
    LC stands for?
  • 6. 
    BG stands for?
  • 7. 
    PDC stands for?
  • 8. 
    The maximum allowable credit period to be given against a PDC is
    • A. 

      90 days

    • B. 

      30 days

    • C. 

      45 days

    • D. 

      60 days

  • 9. 
    If the customer is willing to open an LC, Algypug will bear the LC opening charges?
    • A. 

      True

    • B. 

      False

  • 10. 
    The MD is the only person who is authorised to offer open credit terms to customers.
    • A. 

      True

    • B. 

      False

  • 11. 
    Packing Charges are to be added to the quotations and invoices at what rate?
    • A. 

      3%

    • B. 

      2%

    • C. 

      1%

  • 12. 
    Packing Charges are calculated on what?
    • A. 

      Gross Invoice Value

    • B. 

      Basic Invoice Value

    • C. 

      Total Invoice Value

  • 13. 
    It is the customer's responsibility to take insurance for products sent from Algypug.
    • A. 

      True

    • B. 

      False

  • 14. 
    Which of the following will must be included in the quotation and the invoice?
    • A. 

      Payment terms

    • B. 

      Freight terms

    • C. 

      Packing terms

    • D. 

      Insurance

  • 15. 
    In order to get Excise exemption, the customer must issue which type of form at the time of invoicing?
  • 16. 
    Under what circumstances can a customer get Excise exemption?
    • A. 

      When they are located in a different state

    • B. 

      When they are located in a Special Economic Zone

    • C. 

      When they are selling products to a different country

    • D. 

      When they are in a different country

  • 17. 
    What is the current rate of Excise?
    • A. 

      10%

    • B. 

      11%

    • C. 

      12%

    • D. 

      14.5%

  • 18. 
    What is the current rate of Education Cess?
    • A. 

      2% on ED

    • B. 

      1% on ED

    • C. 

      2% on Basic Invoice Value

    • D. 

      1% on Basic Invoice Value

  • 19. 
    What is the current VAT rate?
    • A. 

      12.5%

    • B. 

      14.5%

    • C. 

      14%

    • D. 

      10%

  • 20. 
    VAT is applicable on packing charges.
    • A. 

      True

    • B. 

      False

  • 21. 
    CST is applicable in the following circumstances?
    • A. 

      When the products are sold outside Bangalore

    • B. 

      When the products are sold outside Karnataka

    • C. 

      When a 'C' Form is provided by the customer

    • D. 

      When at CT3 form is provided by the customer

  • 22. 
    Who is primarily responsible for getting C Forms?
    • A. 

      Customer

    • B. 

      Sales Team

    • C. 

      Finance

    • D. 

      No one

  • 23. 
    If 'C' Forms are not collected, what percentage of a sale does the company lose?
    • A. 

      2%

    • B. 

      10%

    • C. 

      14.5%

    • D. 

      12.5%

  • 24. 
    The Shipping and Billing address must always be the same for legal reasons.
    • A. 

      True

    • B. 

      False

  • 25. 
    The Gross Invoice Value includes?
    • A. 

      Basic Invoice Value

    • B. 

      VAT/CST

    • C. 

      Packing Charges

    • D. 

      Freight Charges

    • E. 

      Excise Duty + Education Cess + Cess on Secondary & Higher Education

    • F. 

      Insurance

    • G. 

      Basic Rate

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