POST UTME REDEEMERS UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A foreign trade agreement between two countries involves the exchange of goods and services. What is the primary benefit of such an agreement?
A. Increased competition among domestic businesses
B. Improved access to new markets and resources
C. Enhanced economic growth and development
D. Reduced trade barriers and tariffs
Question 2
A company's dividend payout ratio is 40%. If the company's net income is ₦1,000,000, what is the company's dividend payment?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦800,000
Question 3
A company is considering setting up a business in Nigeria. What is the primary advantage of registering as a private company?
A. Limited liability for the shareholders
B. Easy to set up and maintain
C. Flexibility in decision-making
D. No requirement for formal accounting records
Question 4
A company's insurance policy covers risks associated with its operations. What is the primary type of insurance that a company would typically purchase?
A. Liability insurance
B. Property insurance
C. Business interruption insurance
D. Professional indemnity insurance
Question 5
A company's financial statements include the balance sheet, income statement, and
A. cash flow statement
B. statement of changes in equity
C. statement of cash flows
D. statement of retained earnings
Question 6
A consumer has a budget constraint given by P1x + P2y = 100, where P1 and P2 are the prices of two goods, and x and y are the quantities consumed. If the consumer has a utility function given by U(x, y) = 2x + 3y, and the prices of the two goods are P1 = 20 and P2 = 30, what is the value of the consumer's optimal bundle?
A. (2, 2)
B. (3, 3)
C. (4, 4)
D. (5, 5)
Question 7
A consumer has a budget constraint of ₦1,000, and the prices of two goods are ₦200 and ₦300, respectively. If the consumer's indifference curve is given by the equation ( U = 2x + 3y ), where x and y are the quantities of the two goods consumed, and the consumer's initial bundle of goods is x = 2, y = 3, what is the consumer's optimal bundle of goods after a price increase?
A. x = 1, y = 4
B. x = 2, y = 3
C. x = 3, y = 2
D. x = 4, y = 1
Question 8
A sole trader's business is exposed to a risk of loss due to a fire that could damage the business premises. The sole trader has two options to mitigate this risk: Option A, purchasing fire insurance, or Option B, installing a fire alarm system. Which option is more effective in reducing the risk of loss?
A. Purchasing fire insurance
B. Installing a fire alarm system
C. Both options are equally effective
D. Neither option is effective
Question 9
A consumer purchases a product online and receives a defective item. What is the consumer's right under the Consumer Protection Act?
A. To return the product for a full refund
B. To exchange the product for a similar item
C. To claim damages for the defective product
D. To cancel the purchase and receive a full refund
Question 10
In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing
A. marginal opportunity cost
B. marginal utility
C. marginal benefit
D. marginal revenue
Question 11
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm uses 100 units of labor and 400 units of capital, what is the value of Q?
A. 20
B. 40
C. 60
D. 80
Question 12
A consumer has a budget constraint of ₦1,000, and the prices of two goods are ₦200 and ₦300, respectively. If the consumer's indifference curve is given by the equation ( U = 2x + 3y ), where x and y are the quantities of the two goods consumed, what is the consumer's optimal bundle of goods?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4
Question 13
A consumer has a budget constraint given by P1x + P2y = 100, where P1 and P2 are the prices of two goods, and x and y are the quantities consumed. If the consumer has a utility function given by U(x, y) = 2x + 3y, and the prices of the two goods are P1 = 20 and P2 = 30, what is the value of the consumer's optimal bundle?
A. (2, 2)
B. (3, 3)
C. (4, 4)
D. (5, 5)
Question 14
A company's cost of capital is 10% per annum. If the company's required rate of return is 12% per annum, what is the company's cost of equity?
A. 8%
B. 10%
C. 12%
D. 15%
Question 15
A company has a warehouse with a capacity to store 10,000 units of goods. The company receives an order for 8,000 units of goods. What is the maximum number of units of goods that the company can store in the warehouse?
A. 8,000
B. 10,000
C. 12,000
D. 14,000

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