POST UTME MADONNA UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's ability to adapt to changing market conditions is best described by which of the following?
A. Market structure
B. Market segmentation
C. Market targeting
D. Market responsiveness
Question 2
A bank has a savings account with an interest rate of 5% per annum. If the account holder deposits ₦100,000 and the interest is compounded annually, how much will the account balance be after 5 years?
A. ₦132,631.16
B. ₦135,000.00
C. ₦137,500.00
D. ₦140,000.00
Question 3
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 is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 100 units of wheat and 100 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
Question 4
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. move in the opposite direction
Question 5
A bank has the following balance sheet: ₦1,000,000 in cash, ₦500,000 in loans, ₦200,000 in investments, and ₦300,000 in deposits. What is the bank's liquidity ratio?
A. 0.5
B. 0.6
C. 0.7
D. 0.8
Question 6
A company exports goods worth ₦1,000,000 to a foreign country. The export is subject to a 10% export duty. If the company pays the duty in cash, how much will it pay in total?
A. ₦1,100,000
B. ₦1,110,000
C. ₦1,120,000
D. ₦1,130,000
Question 7
In a sole trade business, what is the primary advantage of using a cash basis of accounting?
A. Accurate representation of cash flows
B. Easier tax compliance
C. Improved financial reporting
D. Enhanced management decision-making
Question 8
A sole trader is a type of business organization that is owned and managed by one person. Which of the following is a characteristic of a sole trader?
A. Limited liability
B. Unlimited liability
C. Separate legal entity
D. No partnership
Question 9
A firm specializes in producing only one good. This specialization is an example of which of the following?
A. Division of Labor
B. Economies of Scale
C. Comparative Advantage
D. Opportunity Cost
Question 10
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?
A. The firm's pricing strategy.
B. The firm's advertising campaign.
C. The firm's product features and quality.
D. The firm's distribution channels.
Question 11
A company specializes in producing high-quality leather goods. It has a warehouse with a capacity to store 10,000 units of finished products. The company's production process involves cutting, stitching, and finishing. The cutting department produces 5,000 units of raw materials per day, while the stitching department produces 3,000 units of partially finished goods per day. The finishing department produces 2,000 units of finished goods per day. If the company operates for 20 days, how many units of finished goods will it produce?
A. 8,000
B. 10,000
C. 12,000
D. 15,000
Question 12
A company has the following transactions: Purchased goods on credit for ₦50,000; Sold goods on credit for ₦75,000; Paid cash for rent of ₦10,000. What is the net cash flow from these transactions?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 13
A country's economic development is influenced by various factors, including its natural resources, human capital, and institutional framework. Which of the following is a correct example of a natural resource?
A. A country's labor force.
B. A country's capital stock.
C. A country's natural resources.
D. A country's technology.
Question 14
A consumer has a budget constraint of ₦1000 and a preference for two goods: X and Y. The prices of X and Y are ₦200 and ₦300 respectively. If the consumer spends all of their budget on X and Y, what is the maximum amount of X that the consumer can buy?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 15
A consumer purchases a product online and receives a defective item. The consumer contacts the company's customer service department and is told that the product is not covered under warranty. What type of law is applicable in this situation?
A. Contract law
B. Tort law
C. Property law
D. Consumer protection law

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