POST UTME LAUTECH 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 the owner's personal assets. What is the primary reason for this separation?
A. Limited liability
B. Separation of business and personal finances
C. Tax benefits
D. Increased credibility
Question 2
A company has a profit of ₦1250 per unit sold. If it sells 250 units in a day, what is its total profit?
A. ₦312500
B. ₦3125000
C. ₦31250000
D. ₦312500000
Question 3
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy to establish
C. Flexibility in decision-making
D. No tax benefits
Question 4
A marketing manager is considering two different advertising campaigns for a new product. Campaign A has a budget of ₦1,000,000 and is expected to reach 100,000 people, while Campaign B has a budget of ₦500,000 and is expected to reach 50,000 people. If the cost per person for Campaign A is ₦10 and the cost per person for Campaign B is ₦10, what is the total cost of Campaign A?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 5
A firm's financial statements show a net income of ₦1,500,000 and a total equity of ₦2,500,000. What is the return on equity (ROE) for the firm?
A. 60%
B. 65%
C. 70%
D. 75%
Question 6
A company is considering investing in a new project that has a net present value (NPV) of ₦1,500,000 and a payback period of 5 years. If the company's cost of capital is 10%, what is the internal rate of return (IRR) of the project?
A. 15%
B. 16%
C. 17%
D. 18%
Question 7
A company has a risk management strategy that involves diversification of its investments. Which of the following is a benefit of diversification?
A. Reduced risk
B. Increased risk
C. Improved liquidity
D. Enhanced reputation
Question 8
A company exports 500 units of a product to a foreign country. If the product is sold at a price of 20 per unit, and the exchange rate is 1 USD = ₦400, what is the total amount received in naira?
A. ₦10,000,000
B. ₦12,000,000
C. ₦14,000,000
D. ₦16,000,000
Question 9
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are added to the warehouse, what is the new percentage of capacity?
A. 60%
B. 65%
C. 70%
D. 75%
Question 10
A company's marketing strategy involves creating a new product line. What is the primary goal of this strategy?
A. To increase market share
B. To reduce production costs
C. To expand the company's product offerings
D. To improve customer satisfaction
Question 11
A consumer purchases a product for ₦10,000. The product has a 10% discount for the first 100 customers. If the consumer is the 50th customer, what is the price they will pay?
A. ₦9,000
B. ₦9,500
C. ₦10,000
D. ₦10,500
Question 12
A company's articles of association specify the rules for the management of the company. Which of the following is NOT a typical provision in the articles of association?
A. The appointment of directors
B. The issue of shares
C. The payment of dividends
D. The election of the company secretary
Question 13
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives a new shipment of 5,000 units, what is the new percentage of the warehouse that is full?
A. 60%
B. 70%
C. 80%
D. 90%
Question 14
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. Which of the following is a key characteristic of a USP?
A. It is a statement that highlights the product's features and benefits
B. It is a statement that emphasizes the product's price and quality
C. It is a statement that focuses on the product's brand identity
D. It is a statement that compares the product to its competitors
Question 15
A sole trader's business is considered a separate legal entity from its owner. True or False?
A. True
B. False
C. It depends on the jurisdiction
D. A sole trader's business is not a separate legal entity

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