Principles Of Business
Teacher: Mrs. Mills-Dillion
Graded Homework
April 2025
10th GRADE
POB
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Business Documents
Introduction: Business documents
This project will cover the different types of business documents,their purposes and
appearance. Business documents come in all different shapes and sizes and colors.
This project seeks to identify the types and their uses to give knowledge and
understanding.
Acknowledgement
We, group members of group 5, extent this acknowledgment into Mrs. Mil- Dillion in
appreciation for the exposure and opportunity to gain the vast knowledge of The
Principles of Business subject.
Business Documents : Table of contents
● Introduction: Business documents
● Definition
● Reasons for Business documents
● Use of Documents in Trade
● Transportion Documents
● Abbreviations and relation
● Document Credit
1. DEFINE THE TERM ‘ BUSINESS DOCUMENTS’.
Business documents are written records used in business transactions to communicate,
provide evidence, or support decision-making. They include invoices, receipts, memos,
letters, reports, and contracts.
2. STATE FOUR (4) REASONS WHY BUSINESS DOCUMENTS ARE
NECESSARY :
● Proof of Transactions – They provide evidence of business dealings.
● Communication – Help convey information within or outside the business.
● Record Keeping – Assist in maintaining accurate and organized records.
● Legal Protection – Can be used as legal evidence in disputes or audits.
3. BRIEFLY STATE WHAT THESE DOCUMENTS USED IN
TRADE ARE AND INCLUDE A PICTURE OF EACH .
1. Letter of Enquiry
A letter sent by a prospective buyer to a supplier asking for details (price,
availability).
2. Quotation
A supplier’s formal statement of the price and terms at which they will sell
specified goods.
3. Proforma Invoice
An initial invoice sent before shipment, detailing goods, value, and terms, used
for customs.
4. Invoice
A commercial document issued by the seller requesting payment for
goods/services delivered.
5. Credit Note
A document issued by a seller to reduce the amount a buyer owes (e.g., for
returned goods).
6. Debit Note
A document sent by a buyer to a seller notifying under-billing or under-delivery
of goods.
7. Statement of Accounts
A summary of all invoices and payments over a period, showing the outstanding
balance.
8. Purchase Requisition
An internal form used by employees to request the purchase of goods or services
from purchasing department.
9. Stock Card
A ledger card that tracks quantities of each item in stock, recording receipts and
issues.
4. BRIEFLY STATE WHAT THESE TRANSPORTATION
DOCUMENTA ARE AND INCLUDE A PICTURE OF EACH .
Import License:
An official document issued by a government allowing the importation of certain goods into the
country.
https://images.app.goo.gl/Q6v4NLEPoi7VWDVp7
Bill of Lading:
A legal document between the shipper and the carrier detailing the type, quantity, and
destination of goods being transported
https://images.app.goo.gl/u6cHp6dwEW2mWHqp9
Airway Bill:
A document issued by an airline acknowledging receipt of goods and detailing the terms and
conditions of transport.
https://images.app.goo.gl/Asd151Y4BT7m9cbb8
Certificate of Origin:
A certificate of origin (CO) is a document used in international trade to certify that the goods
being exported originated in a specific country.
https://images.app.goo.gl/45nZsm6ECkafKtk39
5. STATE WHAT THE ABBREVIATIONS “CIF ” and “FOB”
STAND FOR , AS IT RELATES TO BUSINESS DOCUMENTS
AND EXPLAIN EACH CONCEPT.
CIF – Cost, Insurance, and Freight
This term means that the seller pays for the cost of goods, insurance, and freight to bring the
goods to the port of destination. The risk, however, is transferred to the buyer once the goods
are loaded onto the shipping vessel. CIF is commonly used in international shipping when the
seller takes responsibility for shipping and insuring the goods.
FOB – Free on Board
This term means that the seller delivers the goods on board a ship chosen by the buyer. The
seller fulfills their responsibility once the goods pass the ship’s rail. From that point, the buyer
takes over responsibility for freight, insurance, and any other costs. FOB is also used in
international trade to indicate when the transfer of ownership and risk occurs.
6. EXPLAIN WHAT DOCUMENTARY CREDIT IS AND
EXPLAIN HOW IT CAN BE USED TO FACILITATE
BUSINESS.
Documentary Credit
Also known as a Letter of Credit, it is a guarantee from a bank that a seller will
receive payment as long as the terms of the credit are met. It is used in
international trade to ensure that the seller gets paid and the buyer receives the
goods as specified.
How it facilitates business
Documentary credit provides security for both parties in a transaction, reducing
risks associated with international trade such as non-payment and fraud. It also
helps build trust between businesses in different countries.
