SS 2 Commerce
  • 1. Credit sale means payment is made __________.
A) Immediately after delivery
B) After an agreed period
C) Before goods are taken
D) When the buyer wishes
  • 2. A system where payment for goods is spread over time is called __________.
A) Barter
B) Discounting
C) Deferred payment
D) Cash sales
  • 3. The person who buys goods on credit is known as the __________.
A) Agent
B) Retailer
C) Debtor
D) Creditor
  • 4. A major disadvantage of credit sale to the seller is __________.
A) High profit
B) Faster turnover
C) Loss of goods
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) Lessor
B) Lessee
C) Hirer
D) Mortgagor
  • 7. A mortgage is a loan secured with __________.
A) Personal property
B) Land or building
C) Shares
D) Insurance
  • 8. The person who lends money in a mortgage agreement is the __________.
A) Mortgagee
B) Hirer
C) Lessee
D) Mortgagor
  • 9. A hire purchase agreement usually contains __________.
A) Selling price only
B) Contact address of buyer only
C) Salary of the buyer
D) Cash price and instalment price
  • 10. A lease type where the lessee repairs and maintains the asset is called a __________ lease.
A) Full-service
B) Operating
C) Finance
D) Closed
  • 11. The first document sent by a seller stating prices and terms is called a __________.
A) Receipt
B) Quotation
C) Debit note
D) Invoice
  • 12. A document used to correct an overcharge is a __________.
A) Invoice
B) Consignment note
C) Credit note
D) Debit note
  • 13. The document that shows details of goods bought and amount owed is the __________.
A) Receipt
B) Order
C) Statement
D) Invoice
  • 14. Proof of payment from the buyer to the seller is a __________.
A) Invoice
B) Quotation
C) Receipt
D) Credit note
  • 15. A document used to request goods from a supplier is the __________.
A) Order form
B) Statement
C) Invoice
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) Finance
B) Filing
C) Feeder
D) Freight
  • 18. A discount given for early payment is called __________.
A) Trade discount
B) Cash discount
C) Seasonal discount
D) Quantity discount
  • 19. Terms of trade refer to __________.
A) How money is exchanged
B) How profits are shared
C) Means of transporting goods
D) Conditions of buying and selling
  • 20. Payment made by writing the amount on a bank paper is called __________.
A) Credit card
B) Postal order
C) Cheque
D) Voucher
  • 21. Which is NOT a means of payment?
A) Quotation
B) Bank draft
C) Cheque
D) Money order
  • 22. A card used for cashless payment electronically is called __________.
A) Postal card
B) Debit card
C) Address card
D) Processing 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) NAFDAC
B) NDLEA
C) EFCC
D) SON
  • 26. Which of the following protects consumers from harmful products?
A) Consumer associations
B) Internal auditors
C) Trade unions
D) Manufacturers
  • 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) Directors
B) Shareholders
C) Debtors
D) Suppliers
  • 29. The document that gives a company legal existence is the __________.
A) Trade note
B) Invoice
C) Receipts
D) Memorandum of Association
  • 30. A company whose shares are not sold to the public is a __________.
A) Public limited company
B) Government firm
C) Partnership
D) Private limited company
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