6. Commercial Policy Quiz
This quiz is designed to test the candidate's knowledge of the Commercial Policy course.
- 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.The MD is the only person who is allowed to authorise a standard discount for an account.
- A.
True
- B.
False
- 14.Generally, the maximum discount on our standard products is?
- A.
5%
- B.
10%
- C.
15%
- 15.To be eligible for a 10% discount, the account must have an Annual Buying Value of approximately how much?
- A.
5 lakhs
- B.
10 lakhs
- C.
15 lakhs
- D.
20 lakhs
- 16.It is the customer's responsibility to take insurance for products sent from Algypug.
- A.
True
- B.
False
- 17.The discount structure is directly linked to the sales incentive you get: the higher the discount, the less incentive you receive.
- A.
True
- B.
False
- 18.If you sell a product with no discount, what is the sales incentive you are eligible to receive?
- A.
1% on contribution
- B.
2% on contribution
- C.
0.5% on contribution
- D.
1.5% on contribution
- 19.Assuming you get approximately Rs 10 lakhs of sales @ 30% contribution in a month, how much incentive would you be eligible for?
- A.
Rs 3000
- B.
Rs 4000
- C.
Rs 5000
- D.
Rs 6000
- 20.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
- 21.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
- 22.What is the current rate of Excise?
- A.
10%
- B.
11%
- C.
12%
- D.
14.5%
- 23.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
- 24.What is the current VAT rate?
- A.
12.5%
- B.
14.5%
- C.
14%
- D.
10%
- 25.VAT is applicable on packing charges.
- A.
True
- B.
False
Questions: 36 | Attempts: 858 | Last updated: Sep 20, 2018
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