Hire Purchase and Installment Sale Transactions Quiz
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Questions and Answers

What is the main difference between the Hire Purchase System and the Installment System?

  • Ownership of the goods is transferred immediately in Hire Purchase, but after a year in Installment System
  • Ownership of the goods is transferred after payment of outstanding balance in Installment System, but not in Hire Purchase
  • Ownership of the goods is never transferred in Hire Purchase, but is transferred on the date of delivery in Installment System
  • Ownership of the goods is transferred after payment of outstanding balance in Hire Purchase, but on the date of delivery in Installment System (correct)

    • What is the key feature of Hire Purchase transactions?

  • Ownership of the goods is never transferred
  • Goods are leased, not purchased
  • Ownership of the goods is transferred immediately upon first installment payment
  • Ownership of the goods is transferred after payment of outstanding balance (correct)

    • How does the Installment System differ from the Hire Purchase System in terms of ownership transfer?

  • Ownership is transferred after payment of outstanding balance in Installment System, but not in Hire Purchase
  • Ownership is transferred after payment of outstanding balance in Hire Purchase, but on the date of delivery in Installment System (correct)
  • Ownership is transferred immediately in Hire Purchase, but after a year in Installment System
  • Ownership is never transferred in Hire Purchase, but is transferred on the date of delivery in Installment System

    • What happens to the ownership of goods in Hire Purchase transactions?

    <p>Transferred after payment of outstanding balance</p> Signup and view all the answers

    In Hire Purchase, when is the ownership of the goods transferred?

    <p>After payment of outstanding balance</p> Signup and view all the answers

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