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