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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) Discounting
B) Cash sales
C) Deferred payment
D) Barter
  • 3. The person who buys goods on credit is known as the __________.
A) Creditor
B) Retailer
C) Agent
D) Debtor
  • 4. A major disadvantage of credit sale to the seller is __________.
A) Faster turnover
B) High profit
C) Loss of goods
D) Risk of bad debts
  • 5. In hire purchase, ownership is transferred to the buyer __________.
A) Before any payment
B) Immediately
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) Mortgagor
B) Hirer
C) Lessee
D) Lessor
  • 7. A mortgage is a loan secured with __________.
A) Insurance
B) Personal property
C) Shares
D) Land or building
  • 8. The person who lends money in a mortgage agreement is the __________.
A) Hirer
B) Lessee
C) Mortgagor
D) Mortgagee
  • 9. A hire purchase agreement usually contains __________.
A) Cash price and instalment price
B) Contact address of buyer only
C) Selling price only
D) Salary of the buyer
  • 10. A lease type where the lessee repairs and maintains the asset is called a __________ lease.
A) Closed
B) Finance
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) Debit note
B) Consignment note
C) Invoice
D) Credit note
  • 13. The document that shows details of goods bought and amount owed is the __________.
A) Order
B) Statement
C) Invoice
D) Receipt
  • 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) Statement
B) Invoice
C) Order form
D) Delivery note
  • 16. "FOB" means __________.
A) Free on Board
B) Freight on Bond
C) Free of Business
D) Foreign Order Book
  • 17. "CIF" means cost, insurance and __________.
A) Freight
B) Filing
C) Finance
D) Feeder
  • 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) Conditions of buying and selling
B) How profits are shared
C) Means of transporting goods
D) How money is exchanged
  • 20. Payment made by writing the amount on a bank paper is called __________.
A) Credit card
B) Cheque
C) Voucher
D) Postal order
  • 21. Which is NOT a means of payment?
A) Money order
B) Quotation
C) Bank draft
D) Cheque
  • 22. A card used for cashless payment electronically is called __________.
A) Address card
B) Debit card
C) Postal card
D) Processing card
  • 23. The safest means of sending money to a distant place is __________.
A) Cheque
B) Money order
C) Postal order
D) Open cheque
  • 24. A person who buys goods and services for use is a __________.
A) Consumer
B) Wholesaler
C) Retailer
D) Producer
  • 25. The agency responsible for checking fake and expired drugs in Nigeria is __________.
A) NAFDAC
B) EFCC
C) SON
D) NDLEA
  • 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) Safety
B) High prices
C) Deception
D) Overcharging
  • 28. The owners of a limited liability company are called __________.
A) Shareholders
B) Suppliers
C) Directors
D) Debtors
  • 29. The document that gives a company legal existence is the __________.
A) Trade note
B) Memorandum of Association
C) Receipts
D) Invoice
  • 30. A company whose shares are not sold to the public is a __________.
A) Partnership
B) Government firm
C) Private limited company
D) Public limited company
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