POST UTME MOUNTAIN TOP UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's articles of association may be altered by a special resolution passed at a general meeting of the company. What is the minimum percentage of shareholders required to pass this resolution?
A. 50%
B. 75%
C. 90%
D. 95%
Question 2
A company has a policy of paying its employees a 10% bonus on their salaries. If an employee earns ₦100,000 per month, what is the bonus?
A. ₦10,000
B. ₦11,000
C. ₦12,000
D. ₦13,000
Question 3
A bank has a reserve requirement of 10% and a cash reserve of ₦100,000. If the bank wants to increase its cash reserve by 20%, how much additional cash will it need to hold?
A. ₦20,000
B. ₦40,000
C. ₦60,000
D. ₦80,000
Question 4
A company has a 10% dividend yield on its shares. If the current market price of the shares is ₦100, what is the expected dividend payment per share?
A. ₦10
B. ₦12
C. ₦15
D. ₦20
Question 5
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. Which strategy is more cost-effective?
A. The first strategy is more cost-effective
B. The second strategy is more cost-effective
C. Both strategies are equally cost-effective
D. Neither strategy is cost-effective
Question 6
A company's financial manager must determine the present value of an investment that will pay 10,000 in 5 years. If the discount rate is 8% per annum, what is the present value?
A. 8,000
B. 9,000
C. 10,000
D. 11,000
Question 7
A firm's cost function is given by C(Q) = 2Q^2 + 5Q + 10. If the firm's current output is Q = 5, what is the firm's current total cost?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 8
A company's risk manager must determine the probability of a product recall. If the probability of a product failure is 0.05, and the probability of a product recall is 0.01, what is the probability of a product recall given a product failure?
A. 0.05
B. 0.1
C. 0.15
D. 0.2
Question 9
A company's financial statements are audited by an independent auditor. What is the purpose of the auditor's report?
A. To provide an opinion on the company's financial position
B. To express an opinion on the company's management
C. To provide an opinion on the company's compliance with laws and regulations
D. To provide an opinion on the company's internal controls
Question 10
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer's current income is ₦12 and the prices of the two goods are ₦2 and ₦3, respectively, what is the consumer's optimal bundle of goods?
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 11
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. shift to the left
Question 12
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Flexibility in decision-making
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 20
B. 30
C. 40
D. 50
Question 14
A consumer purchases a product from a retailer, but the product is defective. The consumer returns the product to the retailer, who refuses to accept it. What is the consumer's next course of action?
A. File a complaint with the manufacturer
B. Seek a refund from the retailer
C. Sue the retailer for breach of contract
D. Contact the consumer protection agency
Question 15
A company's revenue function is given by R = 100Q - 2Q^2. If the company produces 50 units of output, what is the marginal revenue?
A. 40
B. 50
C. 60
D. 70

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