Hire Purchase System Quiz

What is the major difference between the installment system and hire purchase system?

• Number of installments

• Payment method

• Time of transfer of ownership

• Type of goods purchased

According to the Hire Purchase Act, 1972, what contents should be mandatorily mentioned in a hire purchase agreement?

• Date and time of agreement initiation

• Selling price and cash price of the goods

• All of the above

• Amount and number of installments to be paid

What is one of the advantages of the hire purchase system for the hirer?

• No interest payable

• Depreciation benefits on the hired assets

• No need for down payment

• Immediate ownership of the asset

Who is the 'Hire Vendor' in the hire purchase system?

• The buyer of the goods

• The seller of the goods

• The person who obtains the goods from the owner

• The person who makes the down payment

What does the hire purchase agreement contain?

• Terms and conditions for selling the goods

• Terms and conditions for gifting the goods

• Terms and conditions for leasing the goods

• Terms and conditions for hiring the goods

What is regulated by the Hire Purchase Act, 1972?

• Hire purchase interest calculation

• Hire purchase price calculation

• Hire purchase agreement termination

• Hire purchase system

What is the feature of the hire purchase system related to selling rights?

• Hirer can sell the hired asset anytime

• Hirer cannot sell the hired asset until ownership is transferred

• Hirer can only sell the hired asset to the hire vendor

• Hirer can sell the hired asset with permission from the hire vendor

What is the advantage of the hire purchase system for the hire vendor?

• No need for hire purchase agreement

• Increased sales volume

• Decreased sales volume

• No risk of asset repossession

What is the benefit of leasing the goods in a hire purchase system?

• Immediate ownership of the asset

• Depreciation benefits on the leased assets

• No need for down payment

• No interest payable

What is the major difference between hire purchase and leasing?

• Payment method

• Time of transfer of ownership

• Type of goods purchased

• Number of installments