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