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Practice Test
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1
Credit applications request ____ information.
A)personal and employment
B)credit reference
C)financial obligation
D)all of the above
2
When merchandise is shipped FOB shipping point, ____.
A)shipping charges are paid by the seller
B)shipping charges are paid by the buyer
C)shipping charges are waived
D)shipping charges are paid by the shipper
3
From a legal standpoint, an order letter is ____.
A)the acceptance portion of a contract
B)the offer portion of a contract
C)a completed contract
D)all of the above
4
Which of the following order acknowledgment messages should use the direct approach?
A)an incomplete order
B)order for a discontinued item
C)an unusually large order
D)order from a customer with poor credit
5
If an order for towels does not include the color, you should ____.
A)tell the writer that he or she forgot to give you the desired color
B)ask the writer what color he or she wants
C)tell the writer what colors the towels are available in, and ask the writer to check his or her preference on the enclosed card
D)pick a color for the writer and send the towels promptly
6
A letter refusing credit would use ____.
A)the direct approach
B)the indirect approach
C)the persuasive approach
D)the analytical approach
7
Order forms ____.
A)help the buyer give complete information
B)are faster and easier to read than order letters
C)are convenient for both the buyer and seller
D)do all of the above
8
Merchandise can be ordered by ____.
A)fax and phone
B)order form or purchase order
C)Internet
D)all of the above
9
Which of the following should NOT be included in a letter granting credit?
A)information about special privileges for credit customers
B)a warning about the disadvantages of buying too much on credit
C)an explanation of the terms of payment
D)statements to build goodwill
10
The first collection messages in a series should be ____.
A)friendly reminders
B)appeals to the reader's sense of honesty
C)demands for payment
D)copies of all the credit terms





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