POST UTME IMS U 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer protection law that prohibits unfair or deceptive acts or practices in commerce is known as a(n) ______ law.
A. Consumer protection law
B. Antitrust law
C. Truth-in-advertising law
D. Deceptive business practices law
Question 2
A firm has a production function given by Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm uses 4 units of labor and 5 units of capital, what is the output?
A. 10
B. 15
C. 20
D. 25
Question 3
A company's supply chain involves multiple stakeholders, including suppliers, manufacturers, and distributors. Which of the following is an example of a supply chain risk?
A. A supplier's inability to meet demand.
B. A manufacturer's failure to deliver products on time.
C. A distributor's inability to transport products.
D. A customer's dissatisfaction with the product.
Question 4
A firm has a revenue function given by R = 2x^2 - 3x + 5, where x is the number of units sold. If the firm sells 5 units, what is the marginal revenue?
A. 10
B. 15
C. 20
D. 25
Question 5
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. Which of the following statements best describes the opportunity cost of a country that specializes in producing a good?
A. The opportunity cost is the value of the next best alternative use of the resources
B. The opportunity cost is the value of the next best alternative use of the resources, but only in terms of the good being produced
C. The opportunity cost is the value of the next best alternative use of the resources, but only in terms of the resources being used
D. The opportunity cost is the value of the next best alternative use of the resources, but only in terms of the good being produced and the resources being used
Question 6
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing marginal opportunity costs. What is the relationship between marginal opportunity costs and the supply curve?
A. Marginal opportunity costs are constant, and the supply curve is horizontal.
B. Marginal opportunity costs are increasing, and the supply curve is upward-sloping.
C. Marginal opportunity costs are decreasing, and the supply curve is downward-sloping.
D. Marginal opportunity costs are irrelevant to the supply curve.
Question 7
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the name of this type of business?
A. Sole trader
B. Partnership
C. Limited liability company
D. Unregistered business
Question 8
A company has two warehouses, A and B, with capacities of 1000 and 500 units, respectively. Warehouse A has a storage cost of ₦5 per unit, while Warehouse B has a storage cost of ₦10 per unit. If the company wants to store 1200 units, how much will it cost to store these units?
A. ₦6000
B. ₦6500
C. ₦7000
D. ₦7500
Question 9
A company has a cost function given by C = 2x^2 + 3x + 5, where x is the number of units produced. If the company produces 5 units, what is the marginal cost?
A. 10
B. 15
C. 20
D. 25
Question 10
A company's financial statements are audited annually. The auditor's report states that the company's financial position is 'fairly presented' but notes that the company's management has not provided sufficient evidence to support the valuation of its assets. Which of the following is the most appropriate response by the auditor?
A. The auditor should express a qualified opinion.
B. The auditor should express an adverse opinion.
C. The auditor should express a disclaimer of opinion.
D. The auditor should express an unqualified opinion.
Question 11
A firm is considering two different transportation options for its goods. Option A costs ₦50 per unit and Option B costs ₦75 per unit. If the firm wants to transport 1000 units, which option should it choose?
A. Option A, because it is cheaper
B. Option B, because it is more reliable
C. Option A, because it is more reliable
D. Option B, because it is cheaper
Question 12
A company's sole trader is liable for all debts incurred by the business. What is the name of this type of liability?
A. Unlimited liability
B. Limited liability
C. Joint and several liability
D. Personal liability
Question 13
A firm 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 firm needs to transport goods over a distance of 200 kilometers, what is the total cost of transportation by road?
A. ₦30000
B. ₦30000
C. ₦30000
D. ₦30000
Question 14
A firm has a production function given by Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm uses 4 units of labor and 5 units of capital, what is the marginal product of labor?
A. 10
B. 15
C. 20
D. 25
Question 15
A firm's financial statements are prepared using the accrual accounting method. Which of the following is an example of an accrual?
A. Cash received from customers.
B. Accounts receivable.
C. Depreciation expense.
D. Salaries paid to employees.

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