POST UTME ABU 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is likely to be:
A. Vertical
B. Horizontal
C. Inclined
D. U-shaped
Question 2
A company's Memorandum of Association (MOA) is a document that outlines the company's
A. Business objectives
B. Share capital structure
C. Directors' powers and duties
D. All of the above
Question 3
A company is considering exporting its products to a foreign market. Which of the following is a key factor to consider when deciding whether to export?
A. Market size
B. Transportation costs
C. Tariffs and trade barriers
D. Currency exchange rates
Question 4
A company uses the FIFO method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the ending inventory is ₦1,200,000. If the company uses a periodic inventory system, what is the cost of goods sold?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 5
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the ending inventory is ₦1,200,000. If the company uses a perpetual inventory system, what is the cost of goods sold?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 6
A company's Memorandum of Association (MOA) is a document that outlines the company's
A. Business objectives
B. Share capital structure
C. Directors' powers and duties
D. All of the above
Question 7
A warehouse is a type of storage facility used to store goods and materials. What are the benefits of using a warehouse?
A. Reduced storage costs
B. Improved inventory management
C. Increased security for stored goods
D. All of the above
Question 8
A bank is considering lending money to a customer who has a poor credit history. Which of the following is a key factor that the bank should consider when deciding whether to grant the loan?
A. Interest rate
B. Collateral
C. Credit score
D. Loan term
Question 9
A company's Memorandum of Association (MOA) and Articles of Association (AOA) together form the company's
A. Constitution
B. Bylaws
C. Rules and regulations
D. All of the above
Question 10
A firm's revenue function is given by R = 100Q - 2Q^2, where Q is the quantity sold. If the firm wants to maximize revenue, what is the optimal quantity to produce?
A. 10
B. 20
C. 30
D. 40
Question 11
A stock control system is a type of inventory management system used to track and manage inventory levels. What are the benefits of using a stock control system?
A. Improved inventory accuracy
B. Reduced stockouts and overstocking
C. Increased efficiency in inventory management
D. All of the above
Question 12
A bank's cash reserve ratio is 10%. If the bank has a total deposit of ₦1,000,000, how much cash must it keep in reserve?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 13
The following diagram shows a demand curve for a product. If the price elasticity of demand is -2, what is the percentage change in quantity demanded if the price increases by 10%?
A. 20%
B. 40%
C. 60%
D. 80%
Question 14
A company has a total of ₦5,000,000 in assets and ₦2,000,000 in liabilities. What is the company's equity?
A. ₦3,000,000
B. ₦3,000,000
C. ₦3,000,000
D. ₦3,000,000
Question 15
A company has a market share of 30% in a competitive market. If the market size is 100,000 units, what is the company's revenue if the price per unit is 10?
A. ₦3,000,000
B. ₦3,500,000
C. ₦4,000,000
D. ₦4,500,000

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