POST UTME IGBINEDION UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has two production plants, A and B. Plant A produces 100 units of a product and sells it at ₦500 per unit, while Plant B produces 200 units of the same product and sells it at ₦400 per unit. If the company wants to maximize its revenue, what should be the ratio of production between Plant A and Plant B?
A. 1:2
B. 2:1
C. 1:1
D. 3:2
Question 2
A sole trader's business is registered under which of the following?
A. Partnership
B. Sole Proprietorship
C. Limited Liability Company
D. Cooperative Society
Question 3
A company is considering the use of a new marketing strategy. Which of the following would be an example of a 'push' marketing strategy?
A. Advertising
B. Promotions
C. Public Relations
D. Trade Shows
Question 4
A consumer purchases a product from a retailer. The product is defective and the consumer returns it to the retailer. The retailer refuses to replace the product. Which of the following is a consumer right?
A. The right to return the product and get a full refund.
B. The right to return the product and get a replacement.
C. The right to return the product and get a partial refund.
D. The right to return the product and get a store credit.
Question 5
A sole trader, Mr. A, has a business that generates an average profit of ₦50,000 per month. If he wants to expand his business and increase his profit by 20%, how much additional capital will he need to invest?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 6
A company's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). Which of the following is a benefit of using GAAP?
A. GAAP provides a framework for financial reporting.
B. GAAP provides a basis for comparison with other companies.
C. GAAP provides a basis for tax purposes.
D. GAAP provides a basis for investment decisions.
Question 7
A sole trader, Mr. A, has an annual income of ₦500,000 and expenses of ₦200,000. He also has a business loan of ₦300,000 at an interest rate of 10% per annum. If he wants to save ₦100,000 for a new business venture, how much should he pay as interest on the loan?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 8
A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦150 per kilometer, while the cost of transporting goods by rail is ₦120 per kilometer. If the company needs to transport 500 kilometers of goods, what is the total cost of transportation by road and rail respectively?
A. ₦75,000
B. ₦90,000
C. ₦120,000
D. ₦150,000
Question 9
A sole trader operates a small retail business, selling a variety of products to customers. The business has a fixed overhead cost of ₦500,000 per month, and the owner's salary is ₦200,000 per month. The business generates revenue from the sale of products, with an average profit margin of 20%. What is the minimum amount of revenue the business must generate each month to break even?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 10
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor, and K is the capital. If the company wants to increase its production by 20% while keeping labor constant at 100 units, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A company's marketing strategy involves a 20% discount on all products for the first 100 customers. If the original price of each product is ₦500, what is the total revenue for the first 100 customers?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 12
A company's financial statements are audited annually by an independent auditor. The auditor's report is based on the financial statements prepared by the company's management. Which of the following is a limitation of the auditor's report?
A. The auditor's report may not reflect the company's true financial position.
B. The auditor's report may not be based on the company's financial statements.
C. The auditor's report may not be prepared by an independent auditor.
D. The auditor's report may not be based on the company's financial statements prepared by management.
Question 13
A sole trader's business is registered with the Corporate Affairs Commission (CAC). The sole trader has a business name of XYZ Limited. Which of the following is a requirement for the business name?
A. The business name must be unique and not similar to any other business name.
B. The business name must be registered with the CAC.
C. The business name must be approved by the CAC.
D. The business name must be in English language.
Question 14
A company's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). Which of the following is a benefit of using GAAP?
A. GAAP provides a framework for financial reporting.
B. GAAP provides a basis for comparison with other companies.
C. GAAP provides a basis for tax purposes.
D. GAAP provides a basis for investment decisions.
Question 15
A company's marketing strategy involves a 15% discount on all products for the first 50 customers. If the original price of each product is ₦600, what is the total revenue for the first 50 customers?
A. ₦24,000
B. ₦27,000
C. ₦30,000
D. ₦33,000

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