POST UTME ELIZADE UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A business law principle states that a contract is valid if it is made between two parties who are legally competent to enter into a contract. Which of the following is a characteristic of a legally competent party?
A. The party must be an adult.
B. The party must be a citizen of the country.
C. The party must have the capacity to understand the terms of the contract.
D. The party must have the capacity to enter into a contract.
Question 2
A financial institution's ability to manage risk is known as _______ management.
A. Risk Management
B. Asset Management
C. Liability Management
D. Capital Management
Question 3
A financial institution's ability to manage its assets and liabilities is known as _______ management.
A. Asset Liability Management
B. Risk Management
C. Capital Management
D. Liquidity Management
Question 4
A firm's revenue is given by the equation R = 100x - 2x^2, where x is the number of units sold. What is the total revenue when x = 10?
A. ₦800
B. ₦900
C. ₦1000
D. ₦1100
Question 5
A company is considering two different advertising strategies for its new product. Strategy A involves a high level of social media advertising, while Strategy B involves a low level of social media advertising. The company's marketing manager estimates that Strategy A will result in a 20% increase in sales, while Strategy B will result in a 10% increase in sales. However, Strategy A will also result in a 5% increase in costs, while Strategy B will result in a 2% increase in costs. What is the net benefit of Strategy A compared to Strategy B?
A. 0.5%
B. 1%
C. 1.5%
D. 2%
Question 6
A company's sole trader is considering expanding its operations into foreign markets. Which of the following is a key advantage of exporting goods to a foreign market?
A. Increased revenue
B. Reduced competition
C. Improved brand recognition
D. Enhanced supply chain efficiency
Question 7
A company has the following balance sheet: Assets = ₦100m, Liabilities = ₦50m, Equity = ₦50m. What is the company's return on equity?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 8
A financial institution's ability to generate profits through the sale of financial products is known as _______ income.
A. Net Interest Income
B. Non-Interest Income
C. Trading Income
D. Investment Income
Question 9
A country's trade balance is in deficit due to a high demand for imported goods. What is the primary cause of this trade imbalance?
A. High demand for imported goods
B. Low domestic production
C. High interest rates
D. Depreciation of the local currency
Question 10
A consumer protection agency is responsible for enforcing consumer rights. Which of the following is a right that consumers have?
A. The right to return a product that is defective.
B. The right to cancel a contract within a specified period.
C. The right to claim compensation for damages caused by a product.
D. The right to access information about a product before purchasing it.
Question 11
In a sole trade business, the owner's personal and business finances are not separated. What is the primary advantage of this arrangement?
A. Separation of personal and business finances
B. Increased tax liability
C. Reduced administrative costs
D. Improved business credit rating
Question 12
In a sole proprietorship, the owner's personal assets are protected from business liabilities through a legal concept known as _______.
A. Separate Entity
B. Limited Liability
C. Joint Venture
D. Partnership
Question 13
A company's marketing strategy involves creating a new product line. Which of the following is a characteristic of this strategy?
A. It involves creating a new product line that is similar to an existing product.
B. It involves creating a new product line that is different from an existing product.
C. It involves creating a new product line that is a variation of an existing product.
D. It involves creating a new product line that is a replacement for an existing product.
Question 14
A firm's revenue is given by the equation R = 100x - 2x^2, where x is the number of units sold. What is the marginal revenue when x = 10?
A. 80
B. 100
C. 120
D. 140
Question 15
A company has the following income statement: Revenue = ₦200m, Cost of Goods Sold = ₦150m, Operating Expenses = ₦20m. What is the company's net income?
A. ₦30m
B. ₦40m
C. ₦50m
D. ₦60m

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