POST UTME NILE UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's financial year ends on December 31st. The company's accountant prepares a balance sheet as at December 31st. What is the purpose of the balance sheet?
A. To show the company's assets, liabilities, and equity
B. To show the company's revenue and expenses
C. To show the company's cash flow
D. To show the company's profit and loss
Question 2
A consumer protection agency is investigating a complaint about a company's unfair business practices. The agency has collected evidence that the company has engaged in price fixing, which is a violation of the Consumer Protection Act. What is the likely outcome of the investigation?
A. The company will be fined ₦1 million.
B. The company will be required to pay restitution to affected consumers.
C. The company will be forced to cease operations.
D. The agency will drop the investigation.
Question 3
A consumer purchases a product with a price of ₦10,000. The consumer pays a 10% deposit and the balance is paid in 6 equal installments. What is the total amount paid by the consumer?
A. ₦15,000
B. ₦16,000
C. ₦17,000
D. ₦18,000
Question 4
A sole proprietorship is a type of business ownership where one individual owns and operates the business. What are the advantages of a sole proprietorship?
A. Easy to set up, low startup costs, and unlimited personal liability.
B. Easy to set up, low startup costs, and limited personal liability.
C. Easy to set up, low startup costs, and no personal liability.
D. Difficult to set up, high startup costs, and unlimited personal liability.
Question 5
A consumer purchases a product online. What is the consumer's right under the Consumer Protection Act?
A. To return the product within 7 days
B. To claim a refund within 30 days
C. To exchange the product for a different model
D. To seek compensation for any loss or damage
Question 6
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy setup and registration
C. Flexibility in decision-making
D. Tax benefits
Question 7
A firm produces two products, X and Y, using two inputs, labor and capital. The production functions are given by the equations QX = 2L^0.5K^0.5 and QY = 3L^0.75K^0.25. If the firm has 100 units of labor and 50 units of capital, how many units of product X and product Y should it produce?
A. QX = 10, QY = 15
B. QX = 15, QY = 10
C. QX = 20, QY = 20
D. QX = 25, QY = 25
Question 8
A consumer has purchased a product that has a defect. Which of the following laws would protect the consumer's rights?
A. Sale of Goods Act
B. Consumer Protection Act
C. Contract Act
D. Tort Act
Question 9
A company engages in unfair business practices. What is the role of the Consumer Protection Council?
A. To investigate and prosecute the company
B. To mediate between the company and affected consumers
C. To provide consumer education and awareness
D. To regulate consumer prices
Question 10
A company is considering the use of a just-in-time (JIT) inventory system. Which of the following benefits would be most relevant to the company?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Enhanced customer satisfaction
Question 11
A bank's return on equity (ROE) is calculated as net income divided by shareholder equity. If a bank has a net income of ₦120 million and shareholder equity of ₦1.2 billion, what is its ROE?
A. 0.10
B. 0.12
C. 0.15
D. 0.20
Question 12
A firm specializes in producing only one product. This specialization allows the firm to achieve economies of scale in production, which in turn enables it to reduce its costs and increase its profits. However, this specialization also limits the firm's ability to respond to changes in market demand. What is the name of this type of production?
A. Mass Production
B. Batch Production
C. Job Production
D. Continuous Production
Question 13
A company is considering launching a new product in a foreign market. Which of the following marketing strategies would be most appropriate for this situation?
A. Market penetration
B. Market development
C. Product development
D. Diversification
Question 14
A company has a policy of paying its employees a bonus of 10% of their salary if they meet their sales targets. If an employee's salary is ₦100,000 and they meet their sales targets, how much will they receive as a bonus?
A. ₦10,000
B. ₦11,000
C. ₦12,000
D. ₦13,000
Question 15
A bank offers a 5% annual interest rate on deposits. If a customer deposits ₦10,000 for 2 years, how much interest will the customer earn?
A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000

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