GCE Commerce 2023 Theory — Question 9

Model answer

An indent is a request for goods from a supplier, typically used by businesses to order large quantities of goods at a discounted price. An indent can be open or closed: an open indent gives the supplier the freedom to source the goods from any manufacturer, while a closed indent specifies a particular manufacturer from whom the goods must be purchased. A quotation is a document that provides the price and terms of sale for goods or services. It is typically used by businesses to compare prices from different suppliers before making a purchase. A quotation can be formal or informal: a formal quotation is a legally binding document, while an informal quotation is not. Key differences: an indent is used to request goods from a supplier, while a quotation provides the price and terms of sale; an indent can be formal or informal but is not legally binding, while a quotation can be legally binding; an indent is used by businesses to order large quantities of goods at a discounted price, while a quotation is used to compare prices from different suppliers before a purchase.