POST UTME AFE BABALOLA UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two different production processes for a product. Process A requires an initial investment of ₦1,000,000 and generates an annual profit of ₦500,000. Process B requires an initial investment of ₦800,000 and generates an annual profit of ₦600,000. Which process should the firm choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 2
A company is considering the purchase of a new warehouse. The company's accountant has estimated the cost of the warehouse to be ₦1,500,000. However, the company's manager has estimated the cost to be ₦1,200,000. What is the most likely reason for the discrepancy in the estimates?
A. The accountant has overestimated the cost of the warehouse
B. The manager has underestimated the cost of the warehouse
C. The company's financial reports are inaccurate
D. The company's budget is insufficient
Question 3
A company is considering investing in a new production facility. The facility will cost ₦500 million to build and will generate an annual profit of ₦200 million. If the company's cost of capital is 10%, what is the net present value (NPV) of the investment?
A. ₦300 million
B. ₦400 million
C. ₦500 million
D. ₦600 million
Question 4
A consumer protection law requires businesses to provide a 30-day cooling-off period for customers to cancel their purchases. If a customer purchases a product on January 1st and wants to cancel it, what is the latest date they can cancel the purchase?
A. January 31st
B. February 1st
C. February 28th
D. March 1st
Question 5
A company's memorandum of association can be amended by a simple majority vote of shareholders. True or False?
A. True
B. False
C. Depends on the company's constitution
D. Not applicable
Question 6
A consumer protection agency has received complaints about a company's unfair business practices. The agency has collected evidence that the company has engaged in false advertising and has failed to honor its warranties. What action should the agency take?
A. File a lawsuit against the company
B. Issue a warning to the company
C. Impose a fine on the company
D. Order the company to cease operations
Question 7
A company is considering two different marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales force size. If the company's current advertising expenditure is ₦1,000,000 and its current sales force size is 100 people, which strategy would result in a higher increase in sales?
A. Strategy A
B. Strategy B
C. Both strategies would result in the same increase in sales
D. Neither strategy would result in an increase in sales
Question 8
A sole trader's business is considered a separate legal entity from its owner. True or False?
A. True
B. False
C. Depends on the jurisdiction
D. Not applicable
Question 9
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve
Question 10
A company's financial statements show that its total assets have increased by ₦500,000, while its total liabilities have increased by ₦300,000. What is the increase in its net worth?
A. ₦200,000
B. ₦100,000
C. ₦300,000
D. ₦400,000
Question 11
A foreign trade agreement between two countries involves the exchange of goods worth 100 million. If the exchange rate is 1 USD = ₦500, what is the equivalent value in Nigerian Naira?
A. ₦50 billion
B. ₦60 billion
C. ₦70 billion
D. ₦80 billion
Question 12
A company's articles of association can be amended by a two-thirds majority vote of shareholders. True or False?
A. True
B. False
C. Depends on the company's constitution
D. Not applicable
Question 13
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are ₦5 and ₦3 respectively, and the consumer's income is ₦100, what is the optimal bundle of x and y?
A. (10, 10)
B. (15, 5)
C. (20, 0)
D. (0, 20)
Question 14
A consumer has purchased a product from a company, but the product has a defect. The consumer is seeking compensation from the company. What is the primary legal principle that the consumer is relying on?
A. The principle of caveat emptor
B. The principle of strict liability
C. The principle of negligence
D. The principle of breach of contract
Question 15
A company's articles of association can be amended by a simple majority vote of shareholders. True or False?
A. True
B. False
C. Depends on the company's constitution
D. Not applicable

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: