POST UTME SUMMIT UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the supply curve is upward-sloping because
A. Firms are willing to supply more of a good as its price increases.
B. Firms are willing to supply less of a good as its price increases.
C. Firms are willing to supply the same quantity of a good regardless of its price.
D. Firms are willing to supply more of a good as its price decreases.
Question 2
A sole trader has a business that generates an annual profit of ₦500,000. What is the tax liability?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 3
A company is considering two different production methods for its new product. Method A requires an initial investment of ₦5 million and produces 10,000 units per month, while Method B requires an initial investment of ₦3 million and produces 8,000 units per month. If the company expects to sell each unit for ₦2,500, what is the minimum number of months it must operate to break even?
A. 4 months
B. 6 months
C. 8 months
D. 10 months
Question 4
A bank is considering two different investment options for its customers. Option A involves a fixed interest rate of 10% and a variable interest rate of 5%, while Option B involves a fixed interest rate of 15% and a variable interest rate of 3%. If the bank expects to invest ₦1 million per month for 6 months, what is the total interest earned from each option?
A. ₦90,000
B. ₦108,000
C. ₦126,000
D. ₦144,000
Question 5
A firm's foreign trade strategy involves exporting goods to a foreign market. Which of the following is a key advantage of exporting?
A. Increased competition from domestic firms
B. Improved product quality
C. Access to new markets and customers
D. Reduced production costs
Question 6
The concept of 'caveat emptor' in consumer protection law means that the
A. seller is responsible for ensuring the quality of goods sold
B. buyer is responsible for ensuring the quality of goods purchased
C. both the seller and buyer are responsible for ensuring the quality of goods
D. there is no responsibility for ensuring the quality of goods
Question 7
The concept of 'just in time' (JIT) inventory system is relevant in which of the following areas of production and specialization?
A. Mass Production
B. Flexible Manufacturing Systems
C. Just in Time (JIT) Inventory System
D. Assembly Line Production
Question 8
A sole trader's business is considered a separate legal entity from its owner. Which of the following is a characteristic of a sole trader?
A. It has unlimited liability
B. It has a separate legal entity from its owner
C. It is easy to set up and manage
D. It has a fixed number of shareholders
Question 9
In a sole proprietorship, the owner's personal assets are
A. liable for business debts
B. not liable for business debts
C. liable for business profits
D. not liable for business losses
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the resulting change in output?
A. Output increases by 10%
B. Output increases by 15%
C. Output increases by 20%
D. Output remains unchanged
Question 11
A company's marketing strategy involves a mix of product differentiation and market segmentation. Which of the following is a characteristic of product differentiation?
A. Offering a unique product feature
B. Targeting a specific geographic region
C. Creating a new product line
D. Reducing production costs
Question 12
A company's business strategy involves a mix of market research, product development, and marketing. Which of the following is a characteristic of a business strategy?
A. It is solely dependent on market research
B. It involves a mix of market research, product development, and marketing
C. It is a one-time process
D. It is a continuous process
Question 13
A bank's primary function is to act as a
A. pawnbroker
B. insurance company
C. money lender
D. financial intermediary
Question 14
In a just-in-time (JIT) inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
C. To ensure timely delivery of products
D. To reduce the need for inventory management
Question 15
The Central Bank of Nigeria (CBN) uses monetary policy to regulate the money supply in the economy. Which of the following instruments is used to reduce the money supply?
A. Open Market Operations (OMO)
B. Reserve Requirements
C. Discount Rate
D. Selective Credit Controls

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