POST UTME ACHIEVERS UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's foreign trade is most likely to be influenced by which of the following?
A. Tariffs
B. Quotas
C. Exchange rates
D. All of the above
Question 2
A firm is considering a new product launch. The product has a probability of success of 0.8 and a probability of failure of 0.2. If the firm invests ₦500,000 in the product, what is the expected return?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦800,000
Question 3
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are added to the warehouse, what is the new percentage capacity?
A. 60%
B. 65%
C. 70%
D. 75%
Question 4
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. What is the marginal product of labor?
A. MP_L = 1/L
B. MP_L = 1/L^2
C. MP_L = 1/L^0.5
D. MP_L = 1/L^0.25
Question 5
The main advantage of a company is that it has a separate legal identity from its
A. Shareholders
B. Directors
C. Employees
D. Creditors
Question 6
A company has a profit of ₦100,000. If the company's total revenue is ₦500,000 and its total cost is ₦400,000, what is the company's profit margin?
A. 20%
B. 25%
C. 30%
D. 35%
Question 7
A sole trader is a type of business organization that is owned and operated by one person. What are the advantages of a sole trader?
A. Easy to set up and operate, low start-up costs, and high flexibility
B. High risk, low profit margins, and limited access to capital
C. High level of control, low level of responsibility, and limited liability
D. High level of responsibility, low level of control, and unlimited liability
Question 8
A company's financial statements are audited annually. What is the primary purpose of this audit?
A. To ensure the company's financial statements are accurate and reliable.
B. To ensure the company's financial statements comply with accounting standards.
C. To ensure the company's financial statements are presented fairly.
D. To ensure the company's financial statements are in line with tax laws.
Question 9
A company has a production cost of ₦200,000 per unit and a selling price of ₦300,000 per unit. If the company produces 100 units, what is the profit?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 10
The concept of consumer protection is an important aspect of business law. What are the responsibilities of consumers under the Consumer Protection Act?
A. To read and understand the terms and conditions of a contract, to report any defects or issues with a product, and to seek compensation for any losses or damages
B. To ignore the terms and conditions of a contract, to conceal any defects or issues with a product, and to refuse to seek compensation for any losses or damages
C. To negotiate the price of a product, to choose a supplier, and to receive a guarantee
D. To receive a warranty, to return a product, and to complain to a regulatory body
Question 11
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. What is the primary reason for this upward-sloping supply curve?
A. The law of increasing costs is due to the fixed costs of production.
B. The law of increasing costs is due to the variable costs of production.
C. The law of increasing costs is due to the increasing marginal cost of production.
D. The law of increasing costs is due to the decreasing marginal revenue of production.
Question 12
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. Diminishing Marginal Opportunity Cost
B. Increasing Marginal Opportunity Cost
C. Diminishing Marginal Utility
D. Increasing Marginal Utility
Question 13
A consumer has a utility function given by U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
A. x = 200, y = 300
B. x = 300, y = 200
C. x = 400, y = 100
D. x = 100, y = 400
Question 14
A firm specializes in the production of textiles. The firm uses a production function that is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the capital invested. If the firm increases the number of labor hours from 100 to 120 and the capital invested from 100 to 120, what is the new quantity produced?
A. 10
B. 12
C. 15
D. 18
Question 15
A company's financial statements show that its total assets are ₦1,000,000, its total liabilities are ₦500,000, and its net income is ₦200,000. What is the company's return on equity?
A. 20%
B. 25%
C. 30%
D. 35%

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