POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm specializes in producing a single product. Which of the following is a characteristic of specialization?
A. Economies of scale
B. Increased competition
C. Reduced production costs
D. Improved product quality
Question 2
A company has a sole trader business structure. What is the primary responsibility of the sole trader?
A. To manage the business
B. To make financial decisions
C. To take on unlimited liability
D. To hire employees
Question 3
The Consumer Protection Act of 1999 provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. Section 2 of the Act defines a consumer as a person who purchases goods or services for personal use.
B. Section 3 of the Act provides for the establishment of a Consumer Protection Council.
C. Section 4 of the Act prohibits unfair trade practices.
D. Section 5 of the Act provides for the right of consumers to seek redress in court.
Question 4
A company's revenue function is given by R = 100P - 2P^2, where R is the total revenue and P is the price. If the company wants to increase its total revenue by 30%, what percentage increase in price is required?
A. 15%
B. 20%
C. 25%
D. 30%
Question 5
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied by firms will
A. increase
B. decrease
C. remain constant
D. move in the opposite direction
Question 6
A bank has a loan of ₦1,000,000 at an interest rate of 10% per annum. How much interest will the bank pay at the end of the year?
A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000
Question 7
In a sole trader business, what is the primary advantage of maintaining a separate bank account for business transactions?
A. Easy accounting and tax compliance
B. Improved cash flow management
C. Enhanced business credibility
D. Reduced business risk
Question 8
A company's profit is calculated as Revenue - Cost of Goods Sold - Operating Expenses. If the revenue is ₦1,500,000, the cost of goods sold is ₦900,000, and the operating expenses are ₦200,000, what is the company's profit?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 9
A company uses a transportation mode that involves the use of trucks. Which of the following is a characteristic of the transportation mode?
A. High speed
B. High capacity
C. Low cost
D. High flexibility
Question 10
A company has a production process that involves the use of raw materials. Which of the following is a benefit of specialization in the production process?
A. Increased efficiency
B. Reduced costs
C. Improved quality
D. Increased competition
Question 11
A company's articles of association may provide for the appointment of a secretary. What are the duties of a company secretary?
A. The company secretary is responsible for the overall management of the company, and has the power to appoint and remove directors.
B. The company secretary is responsible for the overall management of the company, but has no power to appoint or remove directors.
C. The company secretary has no duties.
D. The company secretary is responsible for the maintenance of the company's records and the preparation of its annual return.
Question 12
A company's memorandum of association may provide for the issue of preference shares. What are the characteristics of preference shares?
A. Preference shares have a fixed dividend rate and are redeemable at the option of the company.
B. Preference shares have a fixed dividend rate, but are not redeemable.
C. Preference shares are redeemable, but do not have a fixed dividend rate.
D. Preference shares have neither a fixed dividend rate nor are redeemable.
Question 13
A foreign trade transaction involves the exchange of goods or services between two or more countries. What is the primary benefit of foreign trade?
A. Increased competition
B. Improved economic growth
C. Enhanced technological advancements
D. Increased employment opportunities
Question 14
A company is considering a new business venture that involves the use of a franchise model. Which of the following is a potential advantage of this model?
A. Reduced marketing costs
B. Improved brand recognition
C. Enhanced product quality
D. Increased customer loyalty
Question 15
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the capital invested. If the company wants to increase its production by 20% while keeping labor hours constant, what percentage increase in capital investment is required?
A. 10%
B. 20%
C. 30%
D. 40%

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: