LM Quiz 3

During a business class, Benjamin asked, what does INCOTERM stand for?

• International Commercial Terms

• International Cargo Terms

• Intercontinental Contract Terms

• International Consignment Terms

Mason is studying international trade and wants to know when INCOTERMS were first conceived.

• 1921

• 1936

• 1945

• 1950

Avery is studying international trade and comes across various shipping terms. Which of the following is NOT one of the first six INCOTERM rules developed?

• FOR

• CIF

• FAS

• FOB

What is the primary purpose of INCOTERMS in international trade transactions involving Abigail's company?

• To define payment terms

• To specify goods specifications

• To determine ownership transfer

• To set international rules for foreign trade

Lily is planning to import some goods for her new business. Which INCOTERM indicates that the seller is responsible for all costs until the goods reach Lily's location?

• DDP

• EXW

• FOB

• CPT

During a recent project, Abigail was tasked with managing the logistics of a shipment. What does the term 'transhipment' refer to in this context?

• Delivery of goods at the buyer's location

• Shipment to an intermediate destination

• Direct shipment to the final destination

• Insurance coverage during transit

Liam is shipping goods internationally and needs to understand the terms of delivery. Which INCOTERM is used for 'Cost Insurance & Freight'?

• DAP

• CPT

• CIF

• CFR

In a recent project, Michael was tasked with understanding the logistics of international shipping. What do INCOTERMS NOT define?

• Risks associated with delivery

• Costs related to transport

• Obligations between buyer and seller

• Transfer of ownership of goods

During a class discussion, Olivia asked, 'Which INCOTERM is classified under 'Arrival' terms?'

• EXW

• DDP

• CPT

• FCA

Ava is a seller who has agreed to ship goods to Ethan under the INCOTERM 'CPT'. What is Ava's main responsibility in this agreement?

• Deliver goods to Ethan's premises

• Pay for all transport costs

• Hand over goods to the carrier

• Obtain insurance for the goods