Professional Documents
Culture Documents
1. David displayed a ‘for sale’ sign on his second hand Toyota motor car. A telephone contact number was
also included. Luton saw the sign and called David.
The next day Luton brought $30, 000 to David and demanded the keys to the Toyota car. David refused to
take the $30, 000 or to hand over the car to Luton. Luton threatened to sue David for breach of contract.
2. Mickey Bee wants to export fruits and vegetables to North America. He has been told that this will require
the preparation and use of a number of business documents which will include either a bill of lading or an
airway bill.
(a) Outline TWO differences between a bill of lading and an airway bill. (4 marks)
(b) List TWO documents, other than those mentioned in part (a) above, that Mickey Bee will need in
order to export goods to North America. (2 marks)
(c) Dicuss TWO problems that can result from Mickey Bee NOT having the documents you listed in 3 (b)
above. (6 marks)
(d) State TWO reasons why a supplier may issue a credit note. (2 marks)
(e) The following documents can be used to make payment for goods supplied by Mickey Bee:
- Documentary Credit
- Standing Order
- Letter of Credit
- Credit Card
Select TWO of the above methods of payment, and for EACH, discuss ONE way in which customers
may benefit from using that method. (6 marks).
(20 MARKS)
3. Jane Steel has a small shop in the rural town of Mavis Hill. She buys and sells a wide range of items. Some
of these items are imported by Jane Steel. In recent times there have been increased levels of crime in the
community, with several businesses in the area being the target of robberies and arson.
END OF TEST
Saraswati Vidya Niketan
Ramnavmi End of Term Examination
Principle of Business
Name: ____________________________ Date:
1. Patricia’s employer fired her after only three months in the job, in breach of a twelve-month
employment contract. Patricia is entitled to recover as damages
2. Which business document ensures that a copy is sent to the stock controller?
(a) Order Form (b) Quotation (c) Advice Note (d) Invoice
(a) Certified Cheque (b) Manager’s Cheque (c) Crossed Cheque (d) Open Cheque
(a) Bill of Exchange (b) Banker’s Draft (c) Money Order (d) Cheque
6. The paying of small and regular contributions to an insurance company is known as?
8. Which document changes the amount that the customer owes the supplier?
(a) Debit notes (b) Discounts (c) Delivery Note (d) Invoice
9. In order for a contract to be legally binding it should have?
(a) Competence (b) Breaches (c) Counter offer (d) Written notice
11. Which of the following signifies which bank the cheque is drawn on?
(a) Account number (b) Branch number (c) Signature of person (d) Serial number
12. Which of these documents is commonly used by a gas and electricity company?
(a) Direct Debit (b) Standing Order (c) Internet Banking (d) Debit Card
13. When the seller introduced a new term to the contract, it is termed
(a) Advise the buyer that the goods are on their way
(b) Sent to a buyer when the buyer is not well known to the supplier
(c) Giving precise details of the product
(d) To check that the goods are being received
(a) Credit note charges for transport while debit note does not include any charges.
(b) Credit note discounts are left out while debit note has an incorrect higher price
(c) Debit note sample goods kept by customer while credit note includes discounts.
(d) Debit note returns faulty goods while credit note undercharge the buyer.
18. Who will have to show the Bill of Lading in order for goods to be collected?
(a) An insane person (b) A housewife (c) An intoxicated man (d) A drug addict
Label the given parts of the Cheque and chart of business documents.
(a) 22.
21.
23.
25. 24.
26.
(b)
30.