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Business Correspondence MCQs CSEET part 2

1. Initial intimation of appointment may be given through a brief

(a) Sympathy letter (b) Congratulatory letter

(c) Provisional letter (d) Thank you letter.

2. Good News Letter are also called as __________

(a) Indirect approach letter (b) Direct approach letter

(c) Both (a) & (b) (d) None of the above.

3. The first step of a commercial transaction is to make

(a) Replies (b) Estimates

(c) Enquiries (d) None of the above.

4. __________ may use technical jargon

(a) Replies (b) Enquiry

(c) Both (a) & (b) (d) Industrial Enquiry.

5. What does CIF stands for -

(a) Cost Insurance & Free (b) Call Insurance & Freight

(c) Cost Insurance & Freight (d) None of the above.

6. __________ bid gets the contract

(a) Lowest (b) Highest

(c) Both (a) & (b) (d) None of the above.

7. __________ is used to identify contractors who would be allowed to tender for certain


(a) Tender (b) Estimate

(c) Pre-qualification (d) Reply.

8. __________ letter saves time and effort.

(a) Ready-to-send (b) Thank you

(c) Sympathy (d) Condolence.

9. Select which from the following is not a type of advertisement.

(a) Hike in price

(b) Inviting tenders

(c) Stunts performed by actors

(d) Recruitment of personnel

10. What does not effect sales demand?

(a) Attention (b) Attraction

(c) Interest (d) Desire.

11. One word for a sentence “fail to fulfil a promise”.

(a) Burdensome (b) Revenge

(c) Penury (d) Tedious.

12. In case of letter of enquiry __________ may also be given, especially in case the intention

is to have credit and when it is the first transaction.

(a) Name of the company

(b) Credit reference

(c) Phone No.

(d) None of the above.

13. __________ only mentions the quantity and type of goods.

(a) Invoice (b) Performa Invoice

(c) Delivery Challan (d) None of the above

14. A note sent by a seller to buyer to rectify an undercharge in the original invoice

(a) Credit note (b) Debit Note

(c) Warrant (d) None of the above

15. Which of the following is not a banking service:

(a) Policy Renewal (b) Overdraft limit

(c) Term loan (d) Status Enquiries

16. The following is an example of which type of letter.

Dear Sir.

Please refer to our statement of a/c for the period ending Dec 2011, which was Mailed to you

on 5 Jan, 2012 and the telephonic reminder letter. We regret to enforce that we have still not

received that Payment.

We will agree that delayed payments may affect schedule and cause avoidable inconvenience

to both the parties.

We shall be grateful if you remit the outstanding amount on the receipt of this letter.

(a) Collection Letter (b) Reminder Letter

(c) Staffment of Account (d) Final Reminder

17. A commercial transaction is a __________ process.

(a) Simple (b) Chain

(c) Complex (d) None of the above

18. The Policy may be declared __________ if the Insurer detects under insurance.

(a) Policy renewal (b) Null and void Policies

(c) Overdraft limit (d) None

19. Which of the following is a type of insurance correspondence letter ?

(a) Reporting loss (b) Overdraft limit

(c) Both (a) & (b) (d) C Form

20. The first collection letter should be written in __________ manner

(a) Firm (b) Polite

(c) Strict (d) None of the above.

21. The __________ is calculated in percentage term say 2 paise per hundred rupees for fire


(a) Restricted loss (b) Sum Assured

(c) Maturity value (d) Premium

22. It is advisable to send a copy of __________ showing arrears of payment to the

companies before sending the collection letter.

(a) Statement of Account

(b) Statement of Affair

(c) Statement showing Balance Sheet

(d) All of the above

23. Which feature of banking services should be used when the payee reports that he has not

received the instrument.

(a) Change of signatories (b) Overdraft limit

(c) Status Enquiries (d) Stop payment

24. The term is used for the introduction of new technologies like

CAM in manufacturing of existing products.

(a) Overdraft (b) Loan

(c) Money order (d) None

25. Sanction letter is required in which type of loan?

(a) Term loan (b) Overdraft

(c) Cash credit (d) All of the above

1 (c) 2 (b) 3 (c) 4 (d) 5 (c)

6 (a7 (c) 8 (a) 9 (c) 10 (b) 11 (b)

12 (b) 13 (c) 14 (b) 15 (a) 16 (b) 17 (c)

18 (b) 19 (a) 20 (b) 21 (d) 22 (a) 23 (d)

24 (b) 25 (d)

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