Business transaction may take place on cash basis in

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Business transaction may take place on cash basis ; in which case goods are paid for before or on delivery or a short while after delivery Business transaction may also take place on credit basis; which means payment is made after a specified period from the date of delivery of the goods or the provision of the services There are various business documents that are used in various stages of business transactions as discussed below; Documents used at the inquiry stage This is the first stage in transaction. An inquiry is a request by a prospective buyer for information on available goods and services. It is aimed at establishing the following; Whether the goods or services required are available for sale The quality or nature of the products available The prices at which the goods or services are being sold The terms of sale in respect to payment and delivery of goods or services Some of the documents used at this stage include; Letter of inquiry; This is a letter written by a potential buyer to the seller to find out the goods and services offered by the seller. A letter of inquiry can be general or specific. A specific letter of inquiry seeks for information about a particular product. Reply to an inquiry The seller may reply to the letter of inquiry by sending any of the following documents; -Price list -A catalogue -Quotation -A tender i) A price list This is a list of items sold by the trader together with their prices. The
information contained in a price list is usually brief and not illustrated and may include; - Name and address of the seller - List of the goods and services -The recommended unit prices of the products -Any discounts offered Price list show the prices of the commodities at that time. A catalogue; A catalogue is a basket which briefly describes the goods a seller stocks. It is normally sent by the seller to the buyer when the buyer sends a general letter of inquiry. It usually carries illustrations on the goods stocked, and could be in the form of attractive and colorful pictures The content of a catalogue includes the following; Name and address of the seller Details of the products to be sold; inform of pictures and illustrations The prices of the products After-sales services offered by the seller Packaging and posting expenses to be incurred Delivery services to be used Terms of sale -Catalogues carry more information than the price list and they are more expensive to print. Quotation; This is a document sent by a seller to a buyer in response to a specific letter of inquiry. It specifies the conditions and terms under which the seller is willing to supply the specified goods and services to the buyer. The content of a quotation includes the following; -Name and address of seller - Name and address of the buyer -Description of goods to be supplied -Prices of the commodities -Terms of sale i.e. discounts, time of supply, delivery -Total of the goods to be supplied Quotations are normally in form of letters, but many large scale businesses have pre-printed

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