POST UTME MADONNA UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A business uses a foreign exchange contract to hedge against currency fluctuations. What is the primary purpose of this contract?
A. To fix the exchange rate
B. To reduce exchange rate risk
C. To increase exchange rate gains
D. To speculate on exchange rate movements
Question 2
A company's memorandum of association is a document that outlines its
A. Objectives
B. Share Capital
C. Business Activities
D. All of the above
Question 3
A firm's demand function is given by P = 100 - 2Q, where P is the price and Q is the quantity demanded. If the firm wants to maximize its revenue, what quantity should it produce?
A. 20
B. 30
C. 40
D. 50
Question 4
A sole trader's business is registered under which of the following business units?
A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Cooperative Society
Question 5
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, then the marginal product of labor is:
A. 1/4
B. 1/2
C. 1
D. 2
Question 6
The main disadvantage of a company's business is that it has
A. Limited Liability
B. Unlimited Liability
C. Complexity
D. Tax Benefits
Question 7
A bank has a customer who wants to open a savings account. Which of the following is a type of banking service?
A. Deposit service
B. Loan service
C. Investment service
D. Credit service
Question 8
A risk management strategy that involves transferring risk to another party is known as?
A. Diversification
B. Hedging
C. Speculation
D. Reinsurance
Question 9
A consumer is considering the purchase of a product that has a price of ₦1,000. The consumer has a budget of ₦2,000 and is willing to spend up to 50% of their budget on the product. However, the consumer also has a 20% chance of losing their job and being unable to afford the product. What is the expected utility of purchasing the product?
A. 0.8
B. 0.9
C. 1.0
D. 1.1
Question 10
A consumer purchases a product from a retailer. What is the primary responsibility of the retailer in this transaction?
A. To provide accurate product information
B. To ensure product quality
C. To provide customer support
D. To handle customer complaints
Question 11
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). Which of the following is a consequence of this?
A. The sole trader is not liable for any business debts.
B. The sole trader's business is not entitled to any tax relief.
C. The sole trader's business is not required to file annual returns.
D. The sole trader's business is not entitled to any government contracts.
Question 12
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
C. Sole Trader
D. Limited Liability Partnership
Question 13
A consumer has a complaint about a product that was purchased from a company. Which of the following is a type of consumer protection?
A. Product liability
B. Consumer rights
C. Consumer education
D. Consumer advocacy
Question 14
A company is considering a merger with another company. What is the primary reason for this decision?
A. To increase market share
B. To reduce competition
C. To improve financial performance
D. To increase employee numbers
Question 15
A company is considering two different advertising strategies. The first strategy involves a one-time payment of ₦100,000, while the second strategy involves a monthly payment of ₦10,000 for 12 months. If the company's discount rate is 10%, which strategy is more valuable?
A. The one-time payment strategy
B. The monthly payment strategy
C. Both strategies are equally valuable
D. Neither strategy is valuable

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