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.
True
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?
Export Promotion Council
Federation of Indian Export Organization
Export Development Authority
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
Bill of Exchange
Pre-shipment
Letter of Credit
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.
True
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.
True
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
Clearance duty
Direct tax
Excise duty
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?
Yes
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.
True
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.
Excise duty
Carting Order
Customs clearance
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.
True
False
SOLUTION
Solution : B
False. The import license can be obtained from the Directorate General of Foreign Trade.