0
Sale of goods... is a single transaction. Once the customer pays for the goods - s/he is free to leave the store, and the item(s) belong(s) to the customer outright.
Hire purchase... is an ongoing transaction. The customer signs an agreement to pay for the goods over a period of time. Although the customer is free to take the goods from the shop, the goods are the property of the business until the final instalment has been paid.
Wiki User
∙ 7y ago
Add your answer:
Earn +20 pts
What is the meaning of interest on purchase price?
It means if u have something on hire purchase over a longer period you have to pay interest .
Should economic growth be sacrificed if necessary in order to reduce poverty?
No. Economic growth is the best way to reduce poverty. Economic growth creates jobs. Economic growth should not be sacrificed, it should merely be more inclusive. More people should experience the benefits of it. Economic growth is a good thing. When economic growth slows or stops, people start worrying about themselves and stop worrying about others. When economic growth is good and people have jobs and money, they are more interested in helping others. When corporations make money, they expand and hire more people. Then those people have money to purchase goods and services. The companies who sell those goods and services hire people to produce those goods and provide those services.
what Is the popular name for a free-market economy in which business people make most of the decisions about what products to produce how many workers to hire and what prices to charge for goods?
socialism
What are the distinguishing features of industrial goods?
1) Geographically concentrated: These markets are geographically concentrated and are not scattered over the geographic area. 2) Limited buyers: The market is limited to the industrial users as they are confined to particular areas and also because the concentration of industries is in the hands of a few industries. Eg: Machinery supply for railways and automobiles factories are sole to a very small no. Of firms. 3) Derived demand: The demand for industrial goods depends upon the demand of other goods. Ultimately, on the demand of consumer goods. 4) Infrequent purchase: Industrial purchases are made only once a year, and not frequently. 5) Large individual purchase: The purchase is always done in large quantities. Though the no of orders placed would be small, but the order would be large. 6) Technical considerations: It assumes greater significance because the goods are bought for a specific use in the business. The products are manufactured according to the instruction and specification of the users. 7) Leasing instead of buying: In the industrial market they lease out rather than purchase on outright basis. Eg: Transport agencies, do not purchase public vehicles but use them on hire basis. 8) Reciprocal buying: It refers to the barer system. There will be an exchange of goods without the use of money. 9) Channels of distribution: Every middleman involved in channel of distribution has to compensate for services render. This compensation is included in the price. a. Producer-Industrial user (Direct channel) b. Producer-Industrial distributor-Industrial user (Indirect channel) c. Producer-Agent- Industrial user (Indirect channel) d. Producer- Agent-Industrial distributor-Industrial user (4 level channel)
Suppose the nation were in a recession with many people unemployed why would economists be happy to see firms begin to buy more capital goods?
it would indicate that they intented to expand production and hire new workers
What are the similarities between sale of goods and hire purchase agreement?
i
What means repossesion as regard to hire purchase?
If a company fails to make it's repayment under the hire purchase agreement then the loan providers can tale the goods bought under the hire purchase as settlement for the loan.
How important is hire purchase to the consumer?
Hire purchase is important because it gives a consumer with less financial ability,the privilege of owning goods with less money.
Distinguish between the Bailment and hire purchase?
1. hire purchase(HP) is an agreement of hire, whereas credit sales is an agreement of sale. 2. ownership of goods is transferred from hire vendor to hire purchaser only when the last installment is paid, but in sales, ownership is transferred immediately to the buyer. 3. price is paid by the hire purchaser through installment which is treated as hire, but in sales price is paid in lumpsum or according to the agreement of sale. 4. the hire vendor can repossess the goods on default. but in sales the seller cannot take back the goods, whatever is the case.
What is Hire-Purchase System characteristics?
There are some salient characterisitics to the Hire-Purchase System. The cash price of goods is paid in installment on agreed terms. The title to goods passes on last payment. The Hire Vendor (Seller) can take possession of goods if Hirer fails to pay an installment. The Hirer is not responsible for risk of loss of goods, till the ownership is transferred. The Hirer cannot mortgage, hire or sell or pledge the goods. The Hirer has got a right to terminate the agreement at any time before the property so passes.
What are the differences between hire purchase and credit sales?
1. hire purchase(HP) is an agreement of hire, whereas credit sales is an agreement of sale. 2. ownership of goods is transferred from hire vendor to hire purchaser only when the last installment is paid, but in sales, ownership is transferred immediately to the buyer. 3. price is paid by the hire purchaser through installment which is treated as hire, but in sales price is paid in lumpsum or according to the agreement of sale. 4. the hire vendor can repossess the goods on default. but in sales the seller cannot take back the goods, whatever is the case.
What is the difference between hire purchase and credit sales?
1. hire purchase(HP) is an agreement of hire, whereas credit sales is an agreement of sale. 2. ownership of goods is transferred from hire vendor to hire purchaser only when the last installment is paid, but in sales, ownership is transferred immediately to the buyer. 3. price is paid by the hire purchaser through installment which is treated as hire, but in sales price is paid in lumpsum or according to the agreement of sale. 4. the hire vendor can repossess the goods on default. but in sales the seller cannot take back the goods, whatever is the case. 9634357689
What is hire purchase?
Hire purchase(frequently abbreviated to HP) is the legal term for a contract, in cases where a buyer cannot afford to pay the asked price for an item of property as a lump sum but can afford to pay a percentage as a deposit, a hire-purchase contract allows the buyer to hire the goods for a monthly rent. When a sum equal to the original full price plus interest has been paid in equal installments, the buyer may then exercise an option to buy the goods at a predetermined price (usually a nominal sum) or return the goods to the owner.
What is hire purchase system?
Hire purchase(frequently abbreviated to HP) is the legal term for a contract, in cases where a buyer cannot afford to pay the asked price for an item of property as a lump sum but can afford to pay a percentage as a deposit, a hire-purchase contract allows the buyer to hire the goods for a monthly rent. When a sum equal to the original full price plus interest has been paid in equal installments, the buyer may then exercise an option to buy the goods at a predetermined price (usually a nominal sum) or return the goods to the owner.
How similar is hire purchase and leasing?
With hire purchase you pay a deposit followed by a set number of monthly payments. Once all the payments are made the goods are yours. Wth leasing you pay an intial fee followed by monthly payments but, unlike with hire purchase, you have to return the goods to the supplier once the leasing contract has expired. The advantage of leasing over HP is that, with leasing, you can keep up to date with new technolgy and the latest models. Also, with HP, capital goods will depreciate over time.
Difference between sales and hire purchase?
1. In a sale, property in the goods is transferred to the buyer immediately at the time of contract, whereas in hire-purchase, the property in the goods passes to the hirer upon payment of the last installment. 2. In a sale, the position of the buyer is that of the owner of the goods but in hire purchase, the position of the hirer is that of a bailee till he pays the last installment. 3. In the case of a sale, the buyer cannot terminate the contract and is bound to pay the price of the goods. On the other hand, in the case of hire-purchase, the hirer may, if he so likes, terminate the contract by returning the goods to its owner without any liability to pay the remaining installments. 4. In the case of a sale, the seller takes the risk of any loss resulting from the insolvency of the buyer. In the case of hire purchase, the owner takes no such risk, for if the hirer fails to pay an installment, the owner has the right to take back the goods. 5. In the case of a sale, the buyer can pass a good title to a bonafide purchaser from him but in a hire-purchase, the hirer cannot pass any title even to a bonafide purchaser. 6. In a sale, sales tax is levied at the time of the contract whereas in a hire-purchase, sales tax is not leviable until it eventually ripens into a sale (K.L. Johar & Co. vs. Dy. Commercial Tax Officer).
What are the differences between hire purchase and conditional sale agreement sales?
Sale of goods on most instances is on a cash basis, whereas on hire purchase, a client pays a certain percentage of the price for an item and pays the rest in installments as agreed with the seller.
