POST UTME PAN-ATLANTIC UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's liability for a product defect is governed by the Consumer Protection Act. Which of the following is a requirement for a product to be considered defective?
A. The product must be in a defective condition unreasonably dangerous to the user.
B. The product must be in a condition that poses a risk to the user's health or safety.
C. The product must be in a condition that is not in conformity with the express warranty of the manufacturer.
D. The product must be in a condition that is not in conformity with the implied warranty of merchantability.
Question 2
A company exports goods to a foreign country. Which of the following best describes the type of trade involved?
A. Import
B. Export
C. Domestic trade
D. International trade
Question 3
A company sells goods to a consumer. What is the primary responsibility of the company towards the consumer?
A. To provide a warranty for the goods
B. To ensure the goods are of good quality
C. To provide a refund for the goods
D. To protect the consumer's personal data
Question 4
A country's foreign trade policy aims to promote exports and reduce imports. What is the primary objective of this policy?
A. To increase domestic employment
B. To reduce trade deficits
C. To promote exports and reduce imports
D. To increase foreign investment
Question 5
A firm has a production function Q = 2L + 3K. If the firm's labor and capital are 10 and 5 respectively, what is the firm's output?
A. 20
B. 25
C. 30
D. 35
Question 6
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is likely to be
A. inelastic
B. elastic
C. unit elastic
D. perfectly inelastic
Question 7
A ship is traveling from Lagos to London. What is the primary mode of transportation used for this journey?
A. Air transport
B. Road transport
C. Rail transport
D. Sea transport
Question 8
A company's financial statements show a net income of ₦1,000,000 and a total asset turnover ratio of 2 times. What is the company's return on equity (ROE)?
A. 10%
B. 12%
C. 15%
D. 18%
Question 9
A company's inventory turnover ratio is 4 times per year. If its average inventory level is ₦500,000, what is the total cost of goods sold for the year?
A. ₦2,000,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000
Question 10
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?
A. Obtain a Tax Identification Number (TIN)
B. Register with the Corporate Affairs Commission (CAC)
C. Obtain a Business Name Certificate
D. Obtain a Trade License
Question 11
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor and K is capital. If the firm wants to produce 16 units of output, and the wage rate is ₦100 per unit of labor, and the rental rate of capital is ₦200 per unit of capital, then the total cost of production is
A. ₦1200
B. ₦1600
C. ₦2400
D. ₦3200
Question 12
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. If the market price is 10, and the firm's marginal revenue is 8, what is the firm's marginal cost?
A. 6
B. 8
C. 10
D. 12
Question 13
A company's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary goal of this strategy?
A. To increase market share
B. To reduce production costs
C. To create a unique selling proposition (USP)
D. To improve customer satisfaction
Question 14
A company's Memorandum and Articles of Association are filed with the Corporate Affairs Commission (CAC). What is the purpose of filing these documents?
A. To obtain a Business Name Certificate
B. To register the company with the CAC
C. To file the company's annual returns
D. To obtain a Tax Identification Number (TIN)
Question 15
A company is considering two investment projects: Project A, which has a 10% chance of success and a 90% chance of failure, and Project B, which has a 20% chance of success and an 80% chance of failure. If the expected return on investment for Project A is ₦100,000, and the expected return on investment for Project B is ₦120,000, then the expected return on investment for the portfolio of both projects is
A. ₦110,000
B. ₦120,000
C. ₦130,000
D. ₦140,000

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