Business Documents

Question 1

When buying and selling goods or services list the documents used in order

Answer 1

Letter of inquiry
Quotation
Order
Delivery note
Invoice
Credit note
Statement
Reciept

Question 2

What should a company do while processing outgoing quotations

Answer 2

Check address of company to be sent to is correct

File a copy of quotation

Question 3

What should a company do while processing incoming quotations

Answer 3

Compare wi other quotations
File a copy of quote
Check quote against your enquiry

Question 4

How might a company prevent having to give out credit notes

Answer 4

Check goods when they are received from supplier
Pack goods properly before they are sent out
Have buyer inspect goods to sort any problems out quicker

Question 5

Why do businesses give their companies cash discounts

Answer 5

To encourage payment quickly
To attract customers
To inmprove cash flow so that the money can be used in their business straight away

Question 6

Explain trade discount

Answer 6

A reduction in the price of goods or services given by one business to another to encourage buying

Question 7

Explain bank draft

Answer 7

A cheque guaranteed by a bank and used when a buyer does not have a current account or is unknown to seller

Question 8

Explain catalogue

Answer 8

A booklet published by seller setting out details of their goods and services to increase sales

Question 9

State three means a company can make an enquiry

Answer 9

Letter
Calling the seller
Email

Question 10

Explain effective purchasing

Answer 10

Obtaining quotations from multiple suppliers to ensure the business obtains, quality at the correct price when they are needed