POST UTME NOUN 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares to the public, what is the amount of share capital received?
A. ₦200,000
B. ₦400,000
C. ₦600,000
D. ₦800,000
Question 2
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. move in the opposite direction
Question 3
A bank's balance sheet can be described by the following equation: Assets = Liabilities + Equity. What is the value of Equity?
A. Assets - Liabilities
B. Liabilities - Assets
C. Assets + Liabilities
D. Liabilities - Equity
Question 4
A company is considering a new investment opportunity with a required rate of return of 12%. Using the net present value (NPV) method, what is the minimum amount that the company should invest in the opportunity?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 5
A company is considering exporting its products to a foreign market. What is the primary advantage of using a letter of credit (L/C) in international trade?
A. It provides a guarantee of payment by the buyer's bank
B. It reduces the risk of non-payment by the buyer
C. It facilitates the exchange of goods and services between countries
D. It provides a means of financing the export transaction
Question 6
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the new output level?
A. Q = 2.4L + 3.45K
B. Q = 2.2L + 3.15K
C. Q = 2.6L + 3.75K
D. Q = 2.8L + 4.05K
Question 7
A company's profit and loss account shows a net profit of ₦200,000. If the company's turnover is ₦1,500,000 and its gross profit is ₦800,000, what is the company's gross profit percentage?
A. 53.33%
B. 50%
C. 55%
D. 60%
Question 8
A trader imports goods worth ₦500,000 and incurs a 10% customs duty. What is the amount of customs duty paid?
A. ₦50,000
B. ₦45,000
C. ₦40,000
D. ₦35,000
Question 9
A firm's production function can be described by the Cobb-Douglas production function, which is given by
A. Q = AK^αL^β
B. Q = AK^αL^β + C
C. Q = AK^αL^β - C
D. Q = AK^αL^β / C
Question 10
A firm is producing a product with a total revenue of ₦1,500,000 and a total cost of ₦1,200,000. Using the break-even analysis, what is the profit of the firm?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 11
A company is considering outsourcing its manufacturing operations to a foreign country. What are the potential risks and benefits?
A. Lower labor costs, higher quality control
B. Higher labor costs, lower quality control
C. Lower labor costs, lower quality control
D. Higher labor costs, higher quality control
Question 12
In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal revenue product of a firm. What is the likely outcome for the firm's production level?
A. Increase production to maximize profits
B. Decrease production to minimize losses
C. Maintain current production level
D. Increase production to meet increasing demand
Question 13
A company is considering investing in a new project that has a projected return on investment (ROI) of 12% per annum. If the cost of capital is 8% per annum, what is the net present value (NPV) of the project after 5 years?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 14
A company has a capital structure consisting of 60% equity and 40% debt. If the company's cost of equity is 12% and the cost of debt is 6%, what is the weighted average cost of capital (WACC)?
A. 8.4%
B. 9.6%
C. 10.8%
D. 11.2%
Question 15
In a perfectly competitive market, what is the relationship between the marginal revenue and marginal cost curves?
A. They intersect at the equilibrium price and quantity
B. Marginal revenue is always greater than marginal cost
C. Marginal cost is always greater than marginal revenue
D. They are parallel to each other

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