Business Terminology Quiz

What is a 'Client'?

• A document issued by a seller to a potential buyer.

• The average production cost per unit.

• A person using the services of a professional person or organization.

• A business which sells products to another business.

What does 'Gross price' include?

• Only the base price of the product.

• Price which includes additional costs such as transport and insurance.

• The price after the trade discount has been deducted.

• The sum of all values.

What is 'VAT'?

• Value added tax.

• The average production cost per unit.

• The amount by which the regular price is reduced.

• The period in which something is active.

What does 'Discount' refer to?

• The price after the trade discount has been deducted.

• A business which sells products to another business.

• The amount by which the regular price of an item is reduced.

• The physical objects that someone produces.

What is meant by 'Validity'?

• The sum of all values.

• The period in which something is active or valid.

• The average production cost per unit.

• A document issued by a seller.

What is 'Net price'?

• The price after all discounts and taxes have been deducted.

• The price set by the manufacturer.

• The price before any discounts are applied.

• The total cost including shipping and handling.

What does 'Invoice' refer to?

• A record of a transaction between two businesses.

• A document that lists goods or services provided and the amount due.

• A summary of a company's financial performance.

• A request for payment from a client.

What is 'Markup'?

• The percentage of profit made on a sale.

• The amount added to the cost price to determine the selling price.

• The total cost of production divided by the number of units produced.

• The reduction in price offered to customers.

What is 'Trade discount'?

• A discount applied after the sale is completed.

• A discount offered to customers for bulk purchases.

• The amount deducted from the invoice total.

• A reduction in price given to a buyer before the sale is finalized.

What does 'Payment terms' refer to?

• The total amount due for a transaction.

• The method of payment accepted by the seller.

• The time frame in which payment is expected from the buyer.

• The conditions under which a seller will complete a sale.