POST UTME IMS U 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are still at risk in case of business debts. What is the name of this type of business risk?
A. Unlimited Liability
B. Limited Liability
C. Joint Liability
D. Single Liability
Question 2
In a sole trading business, what is the primary advantage of using a sole proprietorship compared to a partnership?
A. Limited liability
B. Tax benefits
C. Easy formation
D. Flexibility in decision-making
Question 3
A company has two warehouses located in different cities. The first warehouse has a capacity of 1000 units, and the second warehouse has a capacity of 500 units. The company receives an order for 800 units, and it wants to fulfill the order by shipping from the warehouse with the most available capacity. If the first warehouse has 200 units available, and the second warehouse has 300 units available, which warehouse should the company use to fulfill the order?
A. Warehouse 1
B. Warehouse 2
C. Both warehouses
D. Neither warehouse
Question 4
A company is considering launching a new product line of eco-friendly cleaning products. The company has conducted market research and found that the demand for eco-friendly cleaning products is increasing rapidly. However, the company is concerned about the high production costs associated with using natural ingredients. If the company expects to sell 1000 units of the new product per month at a price of ₦500 per unit, and the production cost per unit is ₦300, what is the minimum price the company should charge to ensure a profit of ₦50 per unit?
A. ₦425
B. ₦450
C. ₦475
D. ₦500
Question 5
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. Diminishing Returns
B. Increasing Opportunity Cost
C. Law of Supply
D. Marginal Revenue
Question 6
A company's articles of association state that the company's shares can be transferred by a simple majority vote of the shareholders. What type of share is this?
A. Preference Share
B. Ordinary Share
C. Redeemable Share
D. Convertible Share
Question 7
A company has a policy of offering a 5% commission to its sales representatives for each sale made. If a sales representative makes a sale of ₦50,000, how much commission will the sales representative earn?
A. ₦2,500
B. ₦2,750
C. ₦3,000
D. ₦3,250
Question 8
A consumer has a utility function given by U = 2A + 3B. If the prices of A and B are 10 and 20 respectively, and the consumer spends all their budget on good A, what is the maximum amount they can spend on good B?
A. 20
B. 30
C. 40
D. 50
Question 9
A company's marketing strategy involves creating a viral video that will be shared on social media. What type of marketing is this?
A. Digital Marketing
B. Experiential Marketing
C. Event Marketing
D. Public Relations
Question 10
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?
A. A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has a comparative advantage in producing wheat.
B. A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has a comparative disadvantage in producing wheat.
C. A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has a comparative advantage in producing rice.
D. A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has no comparative advantage in producing either wheat or rice.
Question 11
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. become irrelevant
Question 12
A firm's marketing mix consists of four main elements: product, price, promotion, and place. Which of the following is a correct example of a product element in a marketing mix?
A. A product with a unique feature that differentiates it from competitors.
B. A product with a low price that is competitive with other products in the market.
C. A product that is promoted through social media advertising.
D. A product that is sold through a physical store.
Question 13
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 14
A company's sole trader has a business interruption insurance policy with a deductible of ₦50,000. If the company experiences a loss of ₦200,000, what is the insurer's liability?
A. ₦150,000
B. ₦200,000
C. ₦150,000
D. ₦50,000
Question 15
A warehouse manager wants to optimize storage space for a new inventory of products. Which of the following warehouse layout designs would be most efficient?
A. First-in, first-out (FIFO)
B. Last-in, first-out (LIFO)
C. FIFO with a buffer zone
D. LIFO with a buffer zone

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