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WAEC Commerce 2018 Objective — Question 20

Question 20 of 50 from the West African Examinations Council (WAEC) Commerce 2018 Objective paper, with the correct answer and a full explanation.

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The reason for sending a proforma invoice to a potential customer is that it is

  • A. an indication of the seller's willingness to grant credit
  • B. a polite way of telling the customer to return the goods
  • C. an invitation to the buyer to buy on hire purchase
  • D. a polite way of refusing to sell on creditCorrect

Explanation

A proforma invoice is often used as a polite means of requiring payment in advance, i.e. a way of declining to extend credit.

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