Class 12 Finance MCQ Chapter 15 Hire-Purchase Solutions in English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Finance MCQ Chapter 15 Hire-Purchase Question Answer and select need one. Class 12 Finance MCQ Chapter 15 Hire-Purchase Solutions Download PDF. AHSEC Class 12 Banking Multiple Choice Solutions.
Class 12 Finance MCQ Chapter 15 Hire-Purchase
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 12 Finance Objective Type Solutions are part of All Subject Solutions. Here we have given HS 1st Year Banking Multiple Choice Question and Answer, HS First Year Banking MCQs Solutions for All Chapters, You can practice these here.
Hire-Purchase
Chapter: 15
| MCQ |
1. In a hire-purchase agreement, payment is made in:
(i) One lump sum.
(ii) Instalments.
(iii) Shares.
(iv) Cash only.
Ans: (ii) Instalments.
2. Who retains ownership of the goods until the last instalment is paid in hire-purchase?
(i) Buyer.
(ii) Bank.
(iii) Seller.
(iv) Agent.
Ans: (iii) Seller.
3. If the buyer defaults on any instalment, the seller can:
(i) File a lawsuit.
(ii) Repossess the goods.
(iii) Ignore the default.
(iv) Lower the price.
Ans: (ii) Repossess the goods.
4. The first payment made at the time of agreement in hire-purchase is called:
(i) Final payment.
(ii) Down payment.
(iii) Instalment.
(iv) Security deposit.
Ans: (ii) Down payment.
5. Each instalment in hire-purchase is treated as:
(i) Profit.
(ii) Hire charge.
(iii) Loan.
(iv) Donation.
Ans: (ii) Hire charge.
6. Under hire-purchase, goods are generally:
(i) Perishable.
(ii) Durable and resaleable.
(iii) Low-value items.
(iv) Free gifts.
Ans: (ii) Durable and resaleable.
7. The hire-purchaser can terminate the agreement by:
(i) Paying extra money.
(ii) Giving at least fourteen days’ notice.
(iii) Informing by phone.
(iv) Without any notice.
Ans: (ii) Giving at least fourteen days’ notice.
8. A major advantage of hire-purchase for the seller is:
(i) No risk.
(ii) Increase in sales volume.
(iii) Less paperwork.
(iv) No security.
Ans: (ii) Increase in sales volume.
9. What is a disadvantage for the seller in hire-purchase?
(i) Small profit.
(ii) Huge finance requirement.
(iii) Easy buyer selection.
(iv) No interest income.
Ans: (ii) Huge finance requirement.
10. Which of the following is an advantage to the hire buyer?
(i) Immediate possession of goods.
(ii) No possession till last payment.
(iii) Higher total cost.
(iv) No ownership ever.
Ans: (i) Immediate possession of goods.
11. A major disadvantage for the buyer in hire-purchase is:
(i) Low price.
(ii) High price due to interest.
(iii) Early ownership.
(iv) Tax benefits.
Ans: (ii) High price due to interest.
12. In a hire-purchase system, the seller can:
(i) Reduce the price anytime.
(ii) Forfeit the amount already received in case of default.
(iii) Transfer ownership before payment.
(iv) Never repossess goods.
Ans: (ii) Forfeit the amount already received in case of default.
13. In hire-purchase, if the goods do not satisfy the buyer’s needs, the buyer can:
(i) Destroy the goods.
(ii) Return the goods and terminate agreement.
(iii) Keep the goods without payment.
(iv) Sell the goods to someone else.
Ans: (ii) Return the goods and terminate agreement.
14. Depreciation and investment allowance in hire-purchase can be claimed by:
(i) Seller.
(ii) Hire buyer.
(iii) Bank.
(iv) Agent.
Ans: (ii) Hire buyer.
15. In leasing, the entire lease rental is:
(i) A tax-deductible expense.
(ii) A donation.
(iii) Not allowed.
(iv) Added to profit.
Ans: (i) A tax-deductible expense.
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