POST UTME NOUN 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A producer specializes in producing a single product. What is the primary advantage of this specialization?
A. Increased efficiency and productivity due to reduced production costs.
B. Improved product quality due to focused expertise.
C. Enhanced customer satisfaction due to tailored products.
D. Increased market share due to diversified product offerings.
Question 2
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are not protected in case the business incurs debts. What is the name of this type of business?
A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Sole Proprietorship
Question 3
A company is considering investing in a new project. Explain the concept of 'time value of money' and how it applies to this decision, using a diagram to illustrate your answer.
A. The time value of money is the concept that money received today is worth more than the same amount of money received in the future, due to the potential for earning interest.
B. The time value of money is the concept that money received in the future is worth more than the same amount of money received today, due to the potential for earning interest.
C. The time value of money is the concept that money received today is worth the same as the same amount of money received in the future, due to the potential for earning interest.
D. The time value of money is the concept that money received in the future is worth less than the same amount of money received today, due to the potential for earning interest.
Question 4
A company's Memorandum of Association (MOA) outlines its objectives. What is the primary purpose of the MOA?
A. To define the company's business operations and management structure.
B. To outline the company's objectives and scope of business.
C. To specify the company's capital structure and shareholding.
D. To detail the company's financial reporting and auditing requirements.
Question 5
A company's articles of association may provide for the issue of debentures. What is the main advantage of debentures?
A. They have a higher claim on assets in the event of liquidation
B. They have a higher claim on dividends
C. They are secured by a charge on the company's assets
D. They have a higher claim on assets in the event of winding up
Question 6
A company is considering investing in a new project. Explain the concept of 'sunk cost' and how it applies to this decision, using a diagram to illustrate your answer.
Question 7
A consumer protection agency has received a complaint about a company's unfair business practices. The agency has gathered evidence that the company has been engaging in price-fixing with its competitors. What is the most appropriate action the agency should take?
A. Issue a warning to the company
B. Conduct a thorough investigation
C. Impose a fine on the company
D. Suspend the company's business license
Question 8
A sole trader's business is considered a separate legal entity from its owner. However, the owner is personally liable for all the business's debts and obligations. What is the name of this type of liability?
A. Unlimited liability
B. Limited liability
C. Joint liability
D. Several liability
Question 9
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's annual sales are 8,000 units, what is the maximum number of units that can be stored in the warehouse?
A. 8,000
B. 10,000
C. 12,000
D. 15,000
Question 10
A firm's revenue function is given by (R(x) = 2x^2 + 10x + 5). What is the marginal revenue function?
A. (MR(x) = 4x + 10)
B. (MR(x) = 2x + 5)
C. (MR(x) = 4x^2 + 10x + 5)
D. (MR(x) = 2x^2 + 10x)
Question 11
A business has a fleet of 20 vehicles, with an average annual mileage of 50,000 km. If the cost of fuel per liter is ₦150, and the vehicle's fuel efficiency is 10 km/liter, what is the total annual fuel cost for the fleet?
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,100,000
D. ₦2,500,000
Question 12
A company's Memorandum of Association is a legal document that outlines the company's objectives, structure, and powers. What is the primary purpose of this document?
A. To outline the company's management structure
B. To define the company's products and services
C. To specify the company's capital and shareholding
D. To outline the company's objectives, structure, and powers
Question 13
A sole trader's business is considered a separate legal entity from its owner. However, the owner is personally liable for all the business's debts and obligations. What is the name of this type of liability?
A. Unlimited liability
B. Limited liability
C. Joint liability
D. Several liability
Question 14
A company's memorandum of association may provide for the issue of shares with a par value. What is the main advantage of shares with a par value?
A. They have a higher claim on assets in the event of liquidation
B. They have a higher claim on dividends
C. They are easier to issue and redeem
D. They have a higher claim on assets in the event of winding up
Question 15
A company's memorandum of association may provide for the issue of redeemable preference shares. What is the main advantage of redeemable preference shares?
A. They have a higher claim on assets in the event of liquidation
B. They have a higher claim on dividends
C. They can be redeemed at a fixed price
D. They have a higher claim on assets in the event of winding up

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: