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