PRINCIPLES OF BUSINESS

A contract is generally based on:

• assets passing from person to person

• agreement between two or more parties

• exchanging goods and services

• a promise to do certain things

An implied condition in a contract is one which is:

• legal in a court of law

• agreed by two parties

• written within the body of the contract

• hidden, not actually stated or written down anywhere

If Maria offers Michael a hook for $500, but Micheal offers to pay only $450 for it, this is a true example of :

• an offer

• a counter offer

• an agreement

• a contract

A specialty contract can be described as one which:

• has a lot of conditions

• is typed in capital letters

• is signed, sealed and delivered

• is written very clearly

A hire purchase contract is an example of:

• an oral contract

• a specialty contract

• an implied contract

• an agreement between the buyer and seller

Termination of a contract can be achieved by ALL of the following ways EXCEPT:

• taking unilateral action

• mutual agreement of both parties

• completing performance

• the death of one party

A supplier responding to a prospective purchaser's letter of inquiry asking for prices and terms of payment would send a:

• purchase order

• quotation

• credit note

• debit note

Which document is usually printed in red to distinguish it from other documents?

• debit note

• advice note

• purchase requisition

• credit note

Which document is used to correct and undercharge in an invoice?

• debit note

• credit note

• invoice

The government issues export licences in order to

• encourage the country importing to demand more of its goods

• encourage manufacturers to make more goods for export

• control the flow of goods out of the country

• control the price of export