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