Free International Business -II 02 Practice Test - 11th Grade - Commerce 

Question 1

Creditworthiness is an assessment by any lender or seller to ensure that the borrower or buyer pay on time. 

A.

True

B.

False

SOLUTION

Solution : A

True. Creditworthiness is an assessment by any lender or seller to ensure that the borrower or buyer pay on time. 

Question 2

Who can issue the Registration Cum Membership Certificate? 

A.

Export Promotion Council

B.

Federation of Indian Export Organization

C.

Export Development Authority

D.

All of the above 

SOLUTION

Solution : D

Export Promotion Council or Federation of Indian Export Organization if not these two then there is another option of Export Development Authority. 

Question 3

___ finance is a finance which the exporter needs to procure raw materials, processing and packaging them and finally transporting the consignment. 

A.

Bill of Exchange

B.

Pre-shipment 

C.

Letter of Credit

D.

None of the above

SOLUTION

Solution : B

Pre-shipment finance is a finance which the exporter needs to procure raw materials, processing and packaging them and finally transporting the consignment. 

Question 4

Is the quality control inspection certificate a must for export. 

A.

True 

B.

False

SOLUTION

Solution : A

True. It is a must to have the quality control inspection certificate is a must to export. 

Question 5

ISO 9000 is issued to organisations after a thorough check by the international standard organisations to make sure the quality is adhered to at all times for all orders. 

A.

True 

B.

False

SOLUTION

Solution : A

True. ISO 9000 is issued to organisations after a thorough check by the international standard organisations to make sure the quality is adhered to at all times for all orders. 

Question 6

___ is a tax paid on manufacturing goods. 

A.

Clearance duty 

B.

Direct tax

C.

Excise duty 

D.

All of the above 

SOLUTION

Solution : C

Excise duty is a tax paid on manufacturing goods. 

Question 7

Mr. Ram is a trader.  He trades textiles. Does Mr.Ram need an excise clearance? 

A.

Yes

B.

No

SOLUTION

Solution : B

No. Mr.Ram is a trader so he doesn't have to pay. Well, excise is paid on the manufacturing of goods and Mr.ram is a trader and not a manufacturer. 

Question 8

Shipping order is a signal for the captain of the ship to receive the specified goods from the importer. 

A.

True

B.

False

SOLUTION

Solution : B

False. Shipping order is a signal for the captain of the ship to receive the specified goods from the exporter. 

Question 9

The process of submitting documents and getting clearance to enter the dock area. 

A.

Excise duty 

B.

Carting Order

C.

Customs clearance

D.

None of the above

SOLUTION

Solution : C

The process of submitting documents and getting clearance to enter the dock area is customs clearance. 

Question 10

The import license can be obtained from the Import Council. 

A.

True

B.

False

SOLUTION

Solution : B

False. The import license can be obtained from the Directorate General of Foreign Trade.