POST UTME ESUT 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer protection agency is investigating a complaint about a company's unfair contract terms. The contract states that the consumer must pay a penalty of ₦10,000 for every day late in payment. If the consumer is 30 days late, what is the total penalty payable?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 2
A warehouse manager wants to optimize the storage of goods in a warehouse. Which of the following storage methods is most effective for maximizing storage capacity?
A. First-in, first-out (FIFO)
B. Last-in, first-out (LIFO)
C. FIFO with a first-expired, first-out (FEFO) policy
D. Random storage
Question 3
A company's sole trader has invested ₦250,000 in a new business venture. The expected return on investment is 12% per annum. Calculate the expected annual profit.
A. ₦30,000
B. ₦25,000
C. ₦30,000
D. ₦25,000
Question 4
A company exports goods worth ₦1,000,000 to a foreign country. If the exchange rate is 1 USD = ₦500, what is the value of the goods in USD?
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 5
A firm's demand curve is downward-sloping because the firm is willing to sell more of a good as its price decreases. Explain why this is the case.
A. Because the firm's marginal revenue decreases as the price increases.
B. Because the firm's marginal revenue increases as the price decreases.
C. Because the firm's total revenue is maximized when the price is at its lowest.
D. Because the firm's total revenue is minimized when the price is at its highest.
Question 6
A company is considering the introduction of a new product. The product has a high fixed cost of production, but the variable cost per unit is low. Which of the following is a characteristic of the product?
A. Economies of scale
B. Diseconomies of scale
C. Constant returns to scale
D. Increasing returns to scale
Question 7
A consumer protection agency has received a complaint from a consumer who purchased a product that was not as described. The agency wants to investigate the complaint. Which of the following is a step in the investigation process?
A. Gathering evidence
B. Conducting interviews
C. Analyzing documents
D. Making a decision
Question 8
A sole trader has a turnover of ₦1,000,000 and a profit of ₦200,000. What is the sole trader's profit margin?
A. 20%
B. 21%
C. 22%
D. 23%
Question 9
A consumer purchases a product for ₦10,000 and sells it for ₦15,000. What is the consumer's profit?
A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500
Question 10
A bank's assets include ₦1.5 billion in cash, ₦2.5 billion in loans, and ₦1.2 billion in investments. What is the bank's total assets?
A. ₦5.2 billion
B. ₦5.5 billion
C. ₦5.8 billion
D. ₦6.0 billion
Question 11
In a perfectly competitive market, the supply curve is upward-sloping because firms are willing to supply more of a good as its price increases. However, this is not the case in a monopoly market. Explain why the supply curve in a monopoly market is downward-sloping.
A. The monopolist has a fixed cost of production that increases as output increases.
B. The monopolist has a decreasing marginal cost of production that increases as output increases.
C. The monopolist has a decreasing marginal revenue that increases as output increases.
D. The monopolist has a fixed price that decreases as output increases.
Question 12
A bank's return on equity (ROE) is a measure of its profitability. If a bank has an ROE of 12% and its equity is ₦1.2 billion, what is its net income?
A. ₦144 million
B. ₦144.8 million
C. ₦145.6 million
D. ₦146.4 million
Question 13
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units, but the warehouse is already 75% full. What is the maximum number of units that the company can store in the warehouse?
A. 3,750 units
B. 4,000 units
C. 4,500 units
D. 5,000 units
Question 14
A consumer protection agency has received a complaint from a consumer who purchased a product that was not as described. The agency wants to investigate the complaint. Which of the following is a step in the investigation process?
A. Gathering evidence
B. Conducting interviews
C. Analyzing documents
D. Making a decision
Question 15
A company has two business units: a sole trader and a partnership. If the sole trader has a profit of ₦200,000 and the partnership has a profit of ₦300,000, what is the total profit of the company?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000

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