Which of the Following Is NOT One of the Characteristics

question 3

Multiple Choice

Which of the following is NOT one of the characteristics of a modern hire purchase agreement?

• A) Goods are hired at a periodic rental which includes interest charges equal to the total price payable.
• B) Property in the goods does not pass until the final instalment of hiring is made.
• C) A hire purchase agreement is considered to be an agreement to sell under the Sale of Goods Acts.
• D) The owner has the right to repossess the goods if there is a breach of the agreement to hire.

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a particular time period.

Out-Of-The-Money

A term used to describe an option contract that would not result in a profit if exercised at the current market level.

Convertible Bond

A type of bond that can be converted into a predetermined amount of the company's equity, usually at the option of the bondholder.