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