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Quiz - INCOTERMS

Total questions: 18

Worksheet time: 14mins

Name
Class
Date
1.

Cheapest and best way of transporting heavy and bulky goods over a long distance.

a)

Air

b)

Land

c)

Sea

2.

Which incoterms has the condition wherein the buyer absorbs all the risk, insurance and cost?

a)

EXW

b)

FCA

c)

FOB

3.

If all the goods to be transported are accommodated in one single container, it is called

a)

FCL (Full Container Load)

b)

LCL (Less than Container Load)

c)

CL (Consolidated Load)

4.

_____ are common terms and rules developed to mitigate language barriers in international shipping.

a)

MARITIME Laws

b)

INCOTERMS

c)

STEERAGE Laws

d)

MARITIME Codes

5.

What is the meaning of Incoterm CPT?

a)

Carriage Ported Towards

b)

Carriage Paid To

c)

Carriage Processed To

6.

What is the meaning of Incoterm CIP?

a)

Cost & Insurance Paid To

b)

Cost & Interest Procured

c)

Carriage & Insurance Paid To

7.

What is the meaning of Incoterm FAS?

a)

Free Alongside Ship

b)

Forward Along Shipment

c)

Free Allotted Ship

8.

FAS (Free Alongside Ship) and FOB (Free On Board) are rules for which kind of transport?

a)

Any kind of transport - sea, land or air

b)

Inland waterway or sea transport

c)

Rail transport only

d)

Air transport only

9.

Which INCOTERM, of the following, is NOT EXCLUSIVE for Maritime Transport?

a)

FOB

b)

CIF

c)

FAS

d)

DDP

10.

When do we invoice if Incoterms 2010 are CIP (destination address)

a)

Once goods are handed over to the first carrier or forwarder

b)

Once goods arrive at destination airport / seaport

c)

Once goods leave the factory at origin

11.

When the Incoterm is Ex-Works, the buyer’s nominated freight forwarder must arrange for the loading of the goods into the truck at the factory. In practice, the seller assists in this task.

a)

True

b)

False

12.

Into how many major Categories, is INCOTERMS 2010 grouped:

a)

2

b)

4

c)

5

d)

3

13.

INCOTERMS is an abbreviation that stands for:

a)

Invoice & Contracting Terms

b)

International Collaboration Terms

c)

International Commercial Terms

d)

International Contracting Terms

14.

You ordered your favorite product on AMAZON and paid for it. The website offers free delivery at your address and has issued a final invoice. What would be INCOTERM that applies in this case:

a)

DDP

b)

CPT

c)

DAT

d)

CIP

15.

You quote only for the product, to make your offer comparable with competition, and remove all logistic expenses. Which INCOTERM have you assumed in the proposal:

a)

FOB

b)

FCA

c)

EXW

d)

CFR

16.

Under FOB Incoterms (Free On Board), who bears the cost of Customs & Clearance

a)

Seller

b)

Buyer

17.

In CFR Incoterm, the insurance is arranged by ______

a)

Buyer

b)

Seller

c)

Freight Forwarder

18.

A Shipment has been ordered from China, via maritime transportation using CPT Incoterm. What is NOT covered under CPT Incoterm?

a)

Packing

b)

Transportation

c)

Insurance

d)

Loading at departure