POST UTME MOUNTAIN TOP UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of 'Gross Domestic Product' (GDP) is a measure of the total value of all final goods and services produced within a country's borders over a specific time period. Which of the following is NOT a component of GDP?
A. Imports
B. Exports
C. Government Consumption Expenditures
D. Net Factor Income from Abroad
Question 2
A company has two branches, one in Lagos and one in Abuja. The Lagos branch has 50 employees, while the Abuja branch has 30 employees. If the company wants to set up a new department that will be located in either Lagos or Abuja, which branch should it choose if it wants to minimize the total cost of setting up the new department?
A. Lagos
B. Abuja
C. Neither
D. Both
Question 3
A sole trader has the following financial statements: income statement and balance sheet. Which of the following is a correct statement about the sole trader's financial position?
A. The sole trader's net worth is equal to the total assets minus total liabilities.
B. The sole trader's net worth is equal to the total equity plus total liabilities.
C. The sole trader's net worth is equal to the total assets minus total equity.
D. The sole trader's net worth is equal to the total liabilities minus total assets.
Question 4
A company has a warehouse with a capacity of 10,000 units. If the warehouse is currently 75% full, how many units can be added before it reaches capacity?
A. 1,500 units
B. 2,500 units
C. 3,750 units
D. 5,000 units
Question 5
A consumer has a budget constraint of 100, and the prices of two goods are 5 and 10 respectively. If the consumer spends all their budget on the two goods, what is the maximum amount of good 2 that can be purchased?
A. 5 units
B. 10 units
C. 15 units
D. 20 units
Question 6
A company's assets are valued at ₦10 million, liabilities are ₦3 million, and equity is ₦7 million. The return on equity (ROE) is
A. 10%
B. 15%
C. 20%
D. 25%
Question 7
A company's articles of association are a legal document that outlines the
A. powers and duties of the directors
B. rights and interests of the shareholders
C. objects and purposes of the company
D. all of the above
Question 8
In a perfectly competitive market, the law of supply dictates that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. move in the opposite direction
Question 9
A company has a production capacity of 10,000 units per month. If it produces 8,000 units in the first month and 9,000 units in the second month, what is the total production capacity used?
A. 80%
B. 90%
C. 100%
D. 110%
Question 10
A company is considering the implementation of a new transportation management system. What are the primary benefits of this system?
A. Improved route optimization and reduced fuel consumption
B. Enhanced customer satisfaction and loyalty
C. Increased storage capacity and reduced warehouse costs
D. Reduced inventory costs and improved cash flow
Question 11
A bank offers a 5% annual interest rate on a fixed deposit account. If a customer deposits ₦10,000 for 2 years, how much interest will the customer earn?
A. ₦500
B. ₦1,000
C. ₦1,500
D. ₦2,000
Question 12
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units and then sells 2,000 units. What is the new stock level?
A. 3,000 units
B. 5,000 units
C. 7,000 units
D. 10,000 units
Question 13
A company's financial statements are audited annually by an independent auditor. This is an example of
A. internal control
B. external control
C. internal audit
D. external audit
Question 14
A company has the following inventory levels: 100 units of product A, 50 units of product B, and 200 units of product C. If the company uses the First-In-First-Out (FIFO) method of inventory valuation, what is the total value of the inventory?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 15
A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?
A. To protect the owner's personal assets from business liabilities
B. To enable the business to enter into contracts independently
C. To facilitate the transfer of ownership to another individual
D. To simplify tax compliance for the business

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: