SS 2 Commerce
  • 1. Credit sale means payment is made __________.
A) Before goods are taken
B) When the buyer wishes
C) Immediately after delivery
D) After an agreed period
  • 2. A system where payment for goods is spread over time is called __________.
A) Deferred payment
B) Discounting
C) Cash sales
D) Barter
  • 3. The person who buys goods on credit is known as the __________.
A) Retailer
B) Agent
C) Debtor
D) Creditor
  • 4. A major disadvantage of credit sale to the seller is __________.
A) Risk of bad debts
B) High profit
C) Loss of goods
D) Faster turnover
  • 5. In hire purchase, ownership is transferred to the buyer __________.
A) After final payment
B) Before any 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) Lessor
B) Mortgagor
C) Hirer
D) Lessee
  • 7. A mortgage is a loan secured with __________.
A) Personal property
B) Insurance
C) Shares
D) Land or building
  • 8. The person who lends money in a mortgage agreement is the __________.
A) Lessee
B) Hirer
C) Mortgagee
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) Operating
B) Closed
C) Finance
D) Full-service
  • 11. The first document sent by a seller stating prices and terms is called a __________.
A) Quotation
B) Debit note
C) Invoice
D) Receipt
  • 12. A document used to correct an overcharge is a __________.
A) Consignment note
B) Invoice
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) Receipt
D) Order
  • 14. Proof of payment from the buyer to the seller is a __________.
A) Receipt
B) Quotation
C) Invoice
D) Credit note
  • 15. A document used to request goods from a supplier is the __________.
A) Statement
B) Invoice
C) Order form
D) Delivery note
  • 16. "FOB" means __________.
A) Free of Business
B) Freight on Bond
C) Foreign Order Book
D) Free on Board
  • 17. "CIF" means cost, insurance and __________.
A) Freight
B) Finance
C) Feeder
D) Filing
  • 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) Means of transporting goods
B) How profits are shared
C) Conditions of buying and selling
D) How money is exchanged
  • 20. Payment made by writing the amount on a bank paper is called __________.
A) Postal order
B) Cheque
C) Credit card
D) Voucher
  • 21. Which is NOT a means of payment?
A) Bank draft
B) Money order
C) Cheque
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) Postal order
B) Cheque
C) Open cheque
D) Money 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) SON
C) EFCC
D) NAFDAC
  • 26. Which of the following protects consumers from harmful products?
A) Internal auditors
B) Consumer associations
C) Trade unions
D) Manufacturers
  • 27. A right of a consumer is the right to __________.
A) Deception
B) Safety
C) Overcharging
D) High prices
  • 28. The owners of a limited liability company are called __________.
A) Directors
B) Debtors
C) Shareholders
D) Suppliers
  • 29. The document that gives a company legal existence is the __________.
A) Invoice
B) Receipts
C) Memorandum of Association
D) Trade note
  • 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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