SS 2 Commerce
  • 1. Credit sale means payment is made __________.
A) Immediately after delivery
B) When the buyer wishes
C) Before goods are taken
D) After an agreed period
  • 2. A system where payment for goods is spread over time is called __________.
A) Barter
B) Cash sales
C) Deferred payment
D) Discounting
  • 3. The person who buys goods on credit is known as the __________.
A) Creditor
B) Debtor
C) Retailer
D) Agent
  • 4. A major disadvantage of credit sale to the seller is __________.
A) Loss of goods
B) Faster turnover
C) High profit
D) Risk of bad debts
  • 5. In hire purchase, ownership is transferred to the buyer __________.
A) Immediately
B) Before any payment
C) After signing the agreement
D) After final payment
  • 6. The person who uses an asset for a fixed period while paying rent is called __________.
A) Lessee
B) Hirer
C) Lessor
D) Mortgagor
  • 7. A mortgage is a loan secured with __________.
A) Shares
B) Land or building
C) Personal property
D) Insurance
  • 8. The person who lends money in a mortgage agreement is the __________.
A) Hirer
B) Mortgagor
C) Lessee
D) Mortgagee
  • 9. A hire purchase agreement usually contains __________.
A) Selling price only
B) Salary of the buyer
C) Contact address of buyer only
D) Cash price and instalment price
  • 10. A lease type where the lessee repairs and maintains the asset is called a __________ lease.
A) Finance
B) Closed
C) Operating
D) Full-service
  • 11. The first document sent by a seller stating prices and terms is called a __________.
A) Invoice
B) Receipt
C) Quotation
D) Debit note
  • 12. A document used to correct an overcharge is a __________.
A) Consignment note
B) Debit note
C) Credit note
D) Invoice
  • 13. The document that shows details of goods bought and amount owed is the __________.
A) Receipt
B) Invoice
C) Statement
D) Order
  • 14. Proof of payment from the buyer to the seller is a __________.
A) Credit note
B) Invoice
C) Quotation
D) Receipt
  • 15. A document used to request goods from a supplier is the __________.
A) Order form
B) Delivery note
C) Statement
D) Invoice
  • 16. "FOB" means __________.
A) Free of Business
B) Foreign Order Book
C) Free on Board
D) Freight on Bond
  • 17. "CIF" means cost, insurance and __________.
A) Finance
B) Filing
C) Freight
D) Feeder
  • 18. A discount given for early payment is called __________.
A) Trade discount
B) Seasonal discount
C) Quantity discount
D) Cash discount
  • 19. Terms of trade refer to __________.
A) Means of transporting goods
B) How money is exchanged
C) Conditions of buying and selling
D) How profits are shared
  • 20. Payment made by writing the amount on a bank paper is called __________.
A) Voucher
B) Credit card
C) Postal order
D) Cheque
  • 21. Which is NOT a means of payment?
A) Money order
B) Cheque
C) Bank draft
D) Quotation
  • 22. A card used for cashless payment electronically is called __________.
A) Processing card
B) Postal card
C) Debit card
D) Address card
  • 23. The safest means of sending money to a distant place is __________.
A) Money order
B) Cheque
C) Postal order
D) Open cheque
  • 24. A person who buys goods and services for use is a __________.
A) Wholesaler
B) Consumer
C) Retailer
D) Producer
  • 25. The agency responsible for checking fake and expired drugs in Nigeria is __________.
A) EFCC
B) SON
C) NAFDAC
D) NDLEA
  • 26. Which of the following protects consumers from harmful products?
A) Internal auditors
B) Manufacturers
C) Consumer associations
D) Trade unions
  • 27. A right of a consumer is the right to __________.
A) Deception
B) High prices
C) Overcharging
D) Safety
  • 28. The owners of a limited liability company are called __________.
A) Directors
B) Suppliers
C) Shareholders
D) Debtors
  • 29. The document that gives a company legal existence is the __________.
A) Memorandum of Association
B) Receipts
C) Trade note
D) Invoice
  • 30. A company whose shares are not sold to the public is a __________.
A) Partnership
B) Government firm
C) Private limited company
D) Public limited company
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