WAEC Commerce Past Questions & Answers - Page 27

131.

The buyer in a hire purchase contract becomes the legal owner of the goods by paying

A.

initial deposit

B.

the last installment

C.

half of the purchase price

D.

two-third of the purchase price

Correct answer is B

Hire purchase is a system by which one pays for a thing in regular installments while having the use of it. The buyer becomes the overall owner of the property when the last installment has been paid. 

132.

A ceiling on the quantity of commodity to be imported into the country is called

A.

ban

B.

tariff

C.

price limit

D.

quota

Correct answer is D

Quota; is a limited quantity of a particular product which under official controls can be produced, exported, or imported.

133.

The difference between the cost price and selling price of an article is

A.

commission

B.

mark-up

C.

rebate

D.

discount

Correct answer is B

Mark-up is simply the amount added to the cost price of goods to cover overheads and profit. This is the difference between the buying price and the selling price

134.

A percentage reduction from the quoted price of goods given to a buyer to encourage bulk purchase is called

A.

cash discount

B.

trade discount

C.

commission

D.

bonus

Correct answer is A

A cash discount is a reduction in the amount of an invoice that the seller allows the buyer. This discount is given in exchange for the buyer paying the invoice earlier than its normal payment date and also encourages bulk purchases

135.

The bank on which a cheque is drawn is known as the

A.

drawer

B.

drawee

C.

cashier

D.

payee

Correct answer is B

Drawee is a legal and banking term used to describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the check or draft. The bank that cashes your check is the drawee, your employer who wrote the check is the drawer, and you are the payee.