Question

A quotation in business communication refers to

• A. A formal statement of the price at which goods or services will be supplied.
• B. A document acknowledging receipt of payment.
• C. A letter requesting information from a supplier.
• D. A report comparing prices of different vendors.

Hint:

Business documents:
• Enquiry -- Requests information.
• Quotation -- Gives price and terms.
• Invoice -- Requests payment after supply.
• Receipt -- Acknowledges payment received.

Answer 1

The Correct Option is A

Step 1: Understand the business term. A quotation is a formal document issued by a seller stating the price and terms under which goods or services will be supplied to a buyer. It generally contains
• description of goods,
• quantity,
• price,
• taxes,
• delivery terms, and
• validity period.

Step 2: Understand its purpose. A quotation helps the buyer know the expected cost before placing an order.

Step 3: Analyse the options.
• (A) Correct. It accurately defines a business quotation.
• (B) Incorrect. A receipt acknowledges payment.
• (C) Incorrect. A request for information is an enquiry, not a quotation.
• (D) Incorrect. Comparing quotations is different from a quotation itself.

Step 4: Final conclusion. \[ \boxed{\text{Quotation}=\text{Formal statement of the price at which goods or services will be supplied}} \] Hence, the correct option is \(\boxed{(A)}\).