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SS 2 Commerce
Contributed by: Obalanlege
  • 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) Deferred payment
C) Cash sales
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) High profit
B) Faster turnover
C) Risk of bad debts
D) Loss of goods
  • 5. In hire purchase, ownership is transferred to the buyer __________.
A) Immediately
B) After final payment
C) After signing the agreement
D) Before any payment
  • 6. The person who uses an asset for a fixed period while paying rent is called __________.
A) Lessee
B) Mortgagor
C) Hirer
D) Lessor
  • 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) Hirer
B) Mortgagor
C) Lessee
D) Mortgagee
  • 9. A hire purchase agreement usually contains __________.
A) Selling price only
B) Cash price and instalment price
C) Contact address of buyer only
D) Salary of the buyer
  • 10. A lease type where the lessee repairs and maintains the asset is called a __________ lease.
A) Finance
B) Closed
C) Operating
D) Full-service
  • 11. The first document sent by a seller stating prices and terms is called a __________.
A) Debit note
B) Receipt
C) Quotation
D) Invoice
  • 12. A document used to correct an overcharge is a __________.
A) Consignment note
B) Debit note
C) Invoice
D) Credit note
  • 13. The document that shows details of goods bought and amount owed is the __________.
A) Statement
B) Order
C) Receipt
D) Invoice
  • 14. Proof of payment from the buyer to the seller is a __________.
A) Credit note
B) Quotation
C) Receipt
D) Invoice
  • 15. A document used to request goods from a supplier is the __________.
A) Statement
B) Order form
C) Invoice
D) Delivery note
  • 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) Feeder
B) Finance
C) Freight
D) Filing
  • 18. A discount given for early payment is called __________.
A) Seasonal discount
B) Trade discount
C) Quantity discount
D) Cash discount
  • 19. Terms of trade refer to __________.
A) How profits are shared
B) Means of transporting goods
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) Voucher
B) Postal order
C) Cheque
D) Credit card
  • 21. Which is NOT a means of payment?
A) Money order
B) Quotation
C) Cheque
D) Bank draft
  • 22. A card used for cashless payment electronically is called __________.
A) Address card
B) Debit card
C) Processing card
D) Postal card
  • 23. The safest means of sending money to a distant place is __________.
A) Cheque
B) Postal order
C) Open cheque
D) Money order
  • 24. A person who buys goods and services for use is a __________.
A) Retailer
B) Producer
C) Wholesaler
D) Consumer
  • 25. The agency responsible for checking fake and expired drugs in Nigeria is __________.
A) SON
B) NAFDAC
C) EFCC
D) NDLEA
  • 26. Which of the following protects consumers from harmful products?
A) Trade unions
B) Internal auditors
C) Manufacturers
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) Directors
C) Debtors
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) Public limited company
B) Private limited company
C) Partnership
D) Government firm
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