Company Y submits 7 day validity offer for spare parts to be exported in Germany starting from January 1st in the following year. By doing so the company has
A) created transactional, but not quotation exposure.
B) created billing exposure in next fiscal year.
C) created limited quotation exposure.
D) did not create any types of exposure.

Question

Quizplus · Accepted Answer

Company Y has created limited quotation exposure as they have submitted an offer with a specific validity period, indicating a potential price change after the validity period. However, the offer is not a firm commitment to a transaction, so it does not create transactional exposure. There is no mention of billing or any other exposure, so options A, B, and D can be ruled out.

Company Y Submits 7 Day Validity Offer for Spare Parts