POST UTME MOUNTAIN TOP UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied of that good will also increase. However, this is not always the case. What is the name of the phenomenon that occurs when the quantity supplied of a good decreases as its price increases?
A. Giffen Goods
B. Inferior Goods
C. Normal Goods
D. Substitutes
Question 2
In the context of consumer protection, what is the primary purpose of the Consumer Protection Act of 1999?
A. To regulate business practices and protect consumers from unfair trade practices
B. To provide a framework for consumer education and awareness
C. To establish a consumer protection agency to handle complaints and disputes
D. To promote competition and fair trade practices in the market
Question 3
A consumer purchases a product from a retailer, but the product is defective. Which of the following is a consumer's right under the Consumer Protection Act?
A. To return the product for a full refund
B. To claim damages for any losses incurred
C. To require the retailer to replace the product
D. To cancel the contract and receive a full refund
Question 4
A company is considering two different storage facilities to store its inventory. Facility A has a capacity of 1000 units and a rental cost of ₦500 per unit per month. Facility B has a capacity of 500 units and a rental cost of ₦200 per unit per month. If the company expects to store 1200 units of inventory, which facility should it choose?
A. Facility A
B. Facility B
C. Both facilities are equally suitable
D. Neither facility is suitable
Question 5
A _______ is a type of business organization that is owned and controlled by its members
A. partnership
B. corporation
C. cooperative
D. sole proprietorship
Question 6
A company's production process involves the following steps: raw material procurement, manufacturing, quality control, and packaging. Which step is most likely to be outsourced?
A. Raw material procurement
B. Manufacturing
C. Quality control
D. Packaging
Question 7
A _______ is a type of business organization that is owned and controlled by its members
A. partnership
B. corporation
C. cooperative
D. sole proprietorship
Question 8
The _______ of a firm refers to the ability of the firm to adjust its production levels in response to changes in demand
A. elasticity of demand
B. elasticity of supply
C. marginal cost
D. marginal revenue
Question 9
A company has purchased an insurance policy to protect against losses due to natural disasters. The policy has a deductible of ₦100,000 and a coverage limit of ₦500,000. If the company suffers a loss of ₦750,000 due to a natural disaster, how much will the insurance company pay?
A. ₦350,000
B. ₦450,000
C. ₦550,000
D. ₦650,000
Question 10
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
B. Unlimited liability
C. Flexibility in decision-making
D. No need for formal accounting records
Question 11
A company has a 10% dividend yield on its shares. If the current market price of the shares is ₦100, what is the annual dividend payment per share?
A. ₦10
B. ₦12
C. ₦15
D. ₦20
Question 12
The _______ of a firm refers to the ability of the firm to adjust its production levels in response to changes in demand
A. elasticity of demand
B. elasticity of supply
C. marginal cost
D. marginal revenue
Question 13
The _______ of a firm refers to the ability of the firm to adjust its production levels in response to changes in demand
A. elasticity of demand
B. elasticity of supply
C. marginal cost
D. marginal revenue
Question 14
A bank is considering the introduction of a new financial product. Which of the following is a key consideration for the bank?
A. The potential demand for the product
B. The potential competition from existing products
C. The potential impact on the bank's financial statements
D. The potential impact on the bank's reputation
Question 15
A consumer protection agency receives a complaint from a customer who purchased a product online. The customer alleges that the product was not as described and was defective. The agency must determine whether the seller breached the contract of sale. Which of the following is a key consideration in determining whether the seller breached the contract?
A. The seller's intention to deceive the customer
B. The customer's failure to read the product description
C. The product's failure to meet the seller's warranty
D. The customer's failure to return the product

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