BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The ownership of goods under hire purchase agreement belongs to the ____
A
seller
B
purchaser
C
seller and purchaser
D
purchaser and financial institution
Explanation: 

Detailed explanation-1: -Under the hire-purchase arrangement, ownership of the asset remains with the supplier until the dues are settled.

Detailed explanation-2: -The following parties are involved in a hire agreement: Hire Purchaser/Hirer: An Individual or organization purchases goods by paying installments. Seller/Dealer: A business entity that sells goods. Financier: A finance company funds the purchase.

Detailed explanation-3: -In hire purchase, ownership of the property is transferred to the hire on the payment of the last installment.

Detailed explanation-4: -Under the Hire Purchase System the Hire Purchaser gets possession of the goods at the outset and can use it, while paying for it in instalments over a specified period of time as per the agreement. However, the ownership of the goods remains with the Hire Vendor until the hire purchaser has paid all the instalments.

There is 1 question to complete.