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GCE Commerce 1989 Question 81

Question 81

Purchase and Sale of Goods

Sending a proforma invoice to a potential customer is

  1. A.an indication that the seller is out of business
  2. B.an indication of the seller's willingness to grant credit
  3. C.a polite way of asking the customer to return the goods
  4. D.an invitation to the buyer to buy on hire purchase
  5. E.a polite way of refusing to sell on credit
Show the answer and explanation

Answer: E (a polite way of refusing to sell on credit)

Explanation

A pro-forma invoice asks for payment before the goods are sent, which politely refuses credit.