POST UTME LEAD CITY UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader has a business income of ₦1,000,000 and a personal income of ₦500,000. What is the total income of the sole trader?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 2
A sole trader's business is affected by the following factors. Which one is NOT a characteristic of a sole trader's business?
A. Limited liability
B. Unlimited liability
C. Flexibility in decision-making
D. Separation of ownership and management
Question 3
A firm is considering investing in a new project. The project has a 5% chance of resulting in a loss of ₦50,000, a 10% chance of resulting in a gain of ₦20,000, and a 85% chance of resulting in a gain of ₦100,000. What is the expected value of the project?
A. ₦4,250
B. ₦5,000
C. ₦10,000
D. ₦45,000
Question 4
A company's risk management strategy involves diversifying its investments. Which of the following is a benefit of this approach?
A. Reduced risk
B. Increased returns
C. Improved liquidity
D. Enhanced reputation
Question 5
A company's warehouse is damaged in a fire, resulting in a loss of inventory. The company's insurance policy covers losses due to fire. What is the effect of this policy on the company's financial position?
A. The company's financial position is unaffected.
B. The company's financial position is improved.
C. The company's financial position is worsened.
D. The company's financial position is neutral.
Question 6
A company's warehouse is designed to store 5000 crates of goods. The warehouse has 5 aisles, each with 10 storage bays. If each storage bay can hold 10 crates, what is the maximum number of crates that can be stored in the warehouse?
A. 5000
B. 50000
C. 500000
D. 5000000
Question 7
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 to 121 units, and its capital input from 100 to 121 units, by how many percentage points will its quantity produced increase?
A. 10%
B. 15%
C. 20%
D. 25%
Question 8
A transportation company offers a 10% discount on all tickets for passengers who book online. If a passenger books a ticket online for ₦10,000, how much will the passenger pay after the discount?
A. ₦9,000
B. ₦9,500
C. ₦10,000
D. ₦10,500
Question 9
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how the principle of comparative advantage leads to increased efficiency in production.
A. The principle of comparative advantage leads to increased efficiency in production by allowing countries to focus on producing goods for which they have a lower opportunity cost.
B. The principle of comparative advantage leads to increased efficiency in production by allowing countries to produce goods for which they have a comparative advantage.
C. The principle of comparative advantage leads to decreased efficiency in production by forcing countries to produce goods for which they have a comparative disadvantage.
D. The principle of comparative advantage has no effect on efficiency in production.
Question 10
A sole trader's business is considered a separate legal entity from its owner. Which of the following is a consequence of this separation?
A. The sole trader's business is not liable for the owner's personal debts.
B. The sole trader's business is not entitled to the owner's personal assets.
C. The sole trader's business is not subject to the owner's personal taxes.
D. The sole trader's business is not required to file separate tax returns.
Question 11
A company has a policy of paying its employees a bonus of 10% of their salary if they meet their quarterly targets. If an employee's salary is ₦100,000 per month, how much bonus will they receive if they meet their quarterly targets?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 12
A consumer purchases a product that is defective and causes damage to their property. The consumer sues the manufacturer for damages. What is the legal basis for the consumer's claim?
A. The Consumer Protection Act.
B. The Sale of Goods Act.
C. The Defective Products Act.
D. The Product Liability Act.
Question 13
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares to the public, what is the amount of proceeds received?
A. ₦200,000
B. ₦400,000
C. ₦600,000
D. ₦800,000
Question 14
A consumer purchases a product with a price of ₦5,000 and a 10% discount. If the consumer pays ₦4,500, what is the amount of discount received?
A. ₦500
B. ₦1,000
C. ₦1,500
D. ₦2,000
Question 15
A company's marketing strategy involves creating a brand image that appeals to a specific demographic. Which of the following is a characteristic of this approach?
A. Segmentation
B. Targeting
C. Positioning
D. Differentiation

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