Quotation

### What is a quotation in commercial terms? - [ ] An invoice issued by the seller. - [x] A statement detailing the price of an item. - [ ] A status update on the shipping process. - [ ] A payment reminder sent to the customer. > **Explanation:** A quotation in commercial terms is a statement provided by the seller detailing the price of an item or service. ### In what context is a quotation provided in response to an inquiry? - [x] In a scenario where a potential buyer requests pricing information. - [ ] During the delivery of goods. - [ ] After a service is completed. - [ ] When a customer makes a payment. > **Explanation:** Quotations are often provided in response to customer inquiries requesting pricing information about goods or services. ### What do bid and ask prices represent in stock market quotations? - [x] Bid represents the highest price a buyer is willing to pay, and ask represents the lowest price a seller is willing to accept. - [ ] Bid represents the selling price, and ask represents the buying price. - [ ] Both bid and ask represent the average stock price. - [ ] They represent historical prices of the stock. > **Explanation:** In the stock market, the bid price is what buyers are willing to pay, while the ask price is what sellers are willing to accept. ### Can a quotation legally bind a seller to a price? - [x] Yes, especially if it meets all contractual elements. - [ ] No, quotations are always non-binding. - [ ] Only when dealing with stocks. - [ ] Only during a promotional period. > **Explanation:** A quotation can be legally binding if it constitutes an offer that is accepted and meets other contractual elements such as consideration. ### How frequently can stock quotations change? - [ ] Once every trading session. - [x] Multiple times throughout the trading session. - [ ] Only at market close. - [ ] Weekly based on performance. > **Explanation:** Stock quotations can change multiple times throughout the trading session due to ongoing fluctuations in market demand and supply. ### What distinguishes a quotation from an estimate in business terms? - [ ] An estimate is always cheaper. - [ ] A quotation includes taxes. - [x] A quotation provides a fixed price; an estimate provides an approximate cost. - [ ] A quotation cannot be changed, but an estimate can. > **Explanation:** A quotation provides a specified, fixed price, while an estimate offers an approximate cost subject to change. ### Why are quotations essential in business transactions? - [x] They provide transparent pricing information needed for decision-making. - [ ] They double as delivery schedules. - [ ] They replace contracts. - [ ] They are used only for tax purposes. > **Explanation:** Quotations are essential as they provide clear and detailed pricing information, helping buyers make informed purchasing decisions. ### What typically is included in a detailed commercial quotation? - [x] Pricing details, quantity, terms, and conditions. - [ ] The shipping address and delivery schedule. - [ ] Only the final amount payable. - [ ] Vendor's annual financial report. > **Explanation:** A commercial quotation generally includes specific pricing details, quantities, terms, conditions, and sometimes discounts and taxes. ### How do investors use stock quotations to make financial decisions? - [ ] They determine the long-term value of the company. - [ ] They track shipping and logistic costs. - [x] By analyzing bid and ask prices to decide on buying or selling. - [ ] By checking the company’s operational procedures. > **Explanation:** Investors use bid and ask prices from stock quotations to make informed decisions on whether to buy or sell securities. ### What impact do stock quotations have on the market? - [x] They affect investor behavior and market prices. - [ ] They determine government policies on trade. - [ ] They fix annual interest rates. - [ ] They set commercial real estate prices. > **Explanation:** Stock quotations provide real-time price information that can influence investor behavior and consequently affect market prices.