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.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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