WAEC Commerce 2008 Question 11

Question 11

Purchase and Sale of Goods

A transaction where the buyer of a commodity becomes its legal owner after the payment of the last instalment is

  1. A.a credit sale
  2. B.factoring
  3. C.hire purchase
  4. D.leasing.
Show the answer and explanation

Answer: C (hire purchase)

Explanation

Under hire purchase ownership passes after the last instalment.