POST UTME FUTO 2023 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 business practices. The company has been accused of engaging in false advertising, making false promises to customers, and failing to provide refunds to dissatisfied customers. Which of the following is a legal consequence of the company's actions?
A. The company will be fined ₦500,000
B. The company will be required to pay damages to affected customers
C. The company will be forced to cease operations
D. The company will be granted a license to operate
Question 2
A company's break-even point (BEP) is the point at which its total revenue equals its total fixed costs. Which of the following is a factor that affects the BEP?
A. Selling price
B. Fixed costs
C. Variable costs
D. All of the above
Question 3
A sole trader's business is considered a separate legal entity from its owner. Which of the following is a consequence of this separation?
A. The sole trader's business is not liable for the owner's personal debts.
B. The sole trader's business is not entitled to the owner's personal assets.
C. The sole trader's business is not responsible for the owner's personal taxes.
D. The sole trader's business is not required to file separate tax returns.
Question 4
A company's financial statements show that its current ratio is 2.5 and its acid-test ratio is 1.2. What can be inferred about the company's liquidity position?
A. The company has a strong liquidity position
B. The company has a weak liquidity position
C. The company's liquidity position is uncertain
D. The company's liquidity position is not relevant
Question 5
A company's board of directors is responsible for
A. appointing the company's management
B. approving the company's financial statements
C. making strategic decisions for the company
D. all of the above
Question 6
A company's sole trader is considering the purchase of a new vehicle for business use. The vehicle costs ₦5,000,000 and has an expected lifespan of 5 years. The company's accountant estimates that the vehicle will depreciate by 20% each year. What is the total depreciation of the vehicle over its lifespan?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 7
A company is considering setting up a sole proprietorship business. What is the primary advantage of this business structure?
A. Easy to set up
B. Low start-up costs
C. Simple tax compliance
D. Unlimited liability
Question 8
A firm is considering two different production technologies to manufacture a new product. The first technology has a higher initial investment cost but lower operating costs. The second technology has a lower initial investment cost but higher operating costs. Which technology should the firm choose if it expects to produce the product for a short period?
A. First technology
B. Second technology
C. Either technology
D. Neither technology
Question 9
A company's share capital is divided into
A. shares and debentures
B. shares and loans
C. shares and bonds
D. shares and preference shares
Question 10
A firm is considering issuing a bond with a face value of ₦100 million and a coupon rate of 8%. What is the bond's yield to maturity?
A. 8%
B. 9%
C. 10%
D. 11%
Question 11
A company specializes in producing and selling a unique brand of chocolates. The production process involves mixing cocoa beans with sugar, milk, and other ingredients. The company uses a just-in-time inventory system to manage its raw materials. However, due to a sudden increase in demand, the company's suppliers are unable to meet the required quantity of cocoa beans. The company's management decides to diversify its product line by introducing a new product, a coffee-flavored confectionery. The new product requires a different set of ingredients and manufacturing process. What is the primary advantage of this diversification strategy?
A. Reduced dependence on a single supplier
B. Increased market share
C. Improved product quality
D. Enhanced brand reputation
Question 12
A bank offers a credit card with a 20% annual interest rate and a 2% annual fee. The cardholder makes a payment of ₦10,000 every month. If the cardholder has a balance of ₦50,000, what is the total interest paid over a 12-month period?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 13
A firm's cash flow statement is a financial statement that shows the inflows and outflows of cash and cash equivalents over a specific period. Which of the following is a type of cash flow?
A. Operating cash flow
B. Investing cash flow
C. Financing cash flow
D. All of the above
Question 14
A firm's cost of capital is the minimum return required by investors to invest in the firm. Which of the following is a component of the cost of capital?
A. Operating expenses
B. Capital expenditures
C. Interest expenses
D. Dividends paid
Question 15
A company has a 10% dividend yield on its shares. If the current market price of the shares is ₦100, what is the annual dividend payment per share?
A. ₦10
B. ₦12
C. ₦15
D. ₦20

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: