Question

Which of the following does not give a difference between a hire purchase and a normal purchase?
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  {\text{A}}{\text{. Timing of payment for asset}} \\
  {\text{B}}{\text{. Quality of asset purchased}} \\
  {\text{C}}{\text{. Legal ownership of asset}} \\
  {\text{D}}{\text{. Total cost of asset}} \\
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Answer 1

Hint: To find which of the following does not give the difference between a hire purchase and a normal purchase, we first study the definitions of hire purchase and normal purchase and then try to find out the difference between them. Hire purchase is basically an installment mode of payment whereas normal purchase is a straight-up payment for the product bought. We use the nature of the purchase transaction to identify the components it involves to find the answer.

Complete step-by-step answer:
Given Data,
Hire purchase
Normal purchase
We first study the definitions of hire purchase and a normal purchase:
Hire purchase is defined as an agreement between the seller and the consumer wherein the consumer pays the price for the product he buys in an installment plan over a period of time. He ends up paying the price of the product and the interest for the time taken to pay.
A normal purchase is defined as a product is sold by the seller to the consumer expecting compensation in form of money upright. The exchange of the product and money takes place at a time.
Now from the definitions of hire purchase and a normal purchase, we can say these points:
The difference between a hire purchase and the normal purchase gives us
i). Timing of the purchase,
ii). Legal ownership and
iii). The total cost of the asset
iv). but not the quality of the asset.
Option B is the correct answer.

Note: In order to solve this type of problem the key is to know the definitions of the concepts given in the question. Once we know the definitions of the given terms we can easily attribute which options from the given options are related to the given and which option cannot be determined. Here there is no way in which we can determine the quality of the asset by the difference between both purchases.