POST UTME BOWEN UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer protection agency has the power to order a company to refund money to consumers who have been misled by its advertising. Which of the following is an example of a misleading advertisement?
A. A company that claims its product is 100% effective
B. A company that claims its product is 90% effective
C. A company that claims its product is 80% effective
D. A company that claims its product is 70% effective
Question 2
The concept of 'just-in-time' inventory management is most closely associated with which of the following transportation modes?
A. Air Freight
B. Truckload
C. Intermodal
D. Rail
Question 3
A sole trader has an annual turnover of ₦3 million. If the company's tax rate is 25%, what is the amount of tax payable?
A. ₦750,000
B. ₦1 million
C. ₦1.25 million
D. ₦1.5 million
Question 4
The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. Prohibition of false or misleading advertisements
B. Establishment of the Consumer Protection Council
C. Compensation for consumers who suffer loss or injury due to unfair trade practices
D. Regulation of consumer credit
Question 5
A consumer has a budget of ₦1000 to spend on two goods, A and B. The price of good A is ₦200 and the price of good B is ₦300. If the consumer spends ₦600 on good A, how much can they spend on good B?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 6
A company is considering the introduction of a new product line. The product line will require an initial investment of ₦4 million and will generate annual profits of ₦2.5 million for the next 4 years. If the company's cost of capital is 15% per annum, what is the internal rate of return (IRR) of the new product line?
A. 20%
B. 25%
C. 30%
D. 35%
Question 7
A firm is considering the introduction of a new marketing strategy. The strategy will require an initial investment of ₦2 million and will generate annual profits of ₦1 million for the next 2 years. If the firm's cost of capital is 10% per annum, what is the net present value (NPV) of the new marketing strategy?
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 8
A consumer protection agency has the power to investigate complaints about unfair business practices. Which of the following is an example of an unfair business practice?
A. Misleading advertising
B. Unfair contract terms
C. Breach of warranty
D. Unfair competition
Question 9
A sole trader in Nigeria is required to keep records of all financial transactions. What is the primary purpose of keeping these records?
A. To calculate tax liability
B. To prepare financial statements
C. To identify areas for cost reduction
D. To demonstrate compliance with tax laws
Question 10
A company's financial statements show that its assets have increased by 15% and its liabilities have decreased by 10%. What is the effect on the company's equity?
A. Increase by 5%
B. Increase by 10%
C. Decrease by 5%
D. Decrease by 10%
Question 11
A company's marketing strategy involves creating a brand identity that appeals to a specific demographic. Which of the following marketing mix elements is most closely related to this strategy?
A. Product
B. Price
C. Promotion
D. Place
Question 12
A company's sole trader has an annual turnover of ₦5 million. If the company's tax rate is 20%, what is the amount of tax payable?
A. ₦1 million
B. ₦1.25 million
C. ₦1.5 million
D. ₦2 million
Question 13
A bank in Nigeria offers a loan to a customer at an interest rate of 12% per annum. What is the present value of a future payment of ₦100,000 due in 5 years?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 14
A company has a production function given by ( Q = 2L^2 + 3K ). If the price of labor is ( rac{dL}{dP} = 10 ) and the price of capital is ( rac{dK}{dP} = 5 ), what is the marginal product of labor?
A. ( MP_L = 4L )
B. ( MP_L = 6L )
C. ( MP_L = 8L )
D. ( MP_L = 10L )
Question 15
A company is considering the introduction of a new product line. The product line will require an initial investment of ₦3 million and will generate annual profits of ₦1.5 million for the next 3 years. If the company's cost of capital is 12% per annum, what is the payback period of the new product line?
A. 2 years
B. 2.5 years
C. 3 years
D. 3.5 years

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