POST UTME SUMMIT UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a warehouse with a capacity of 10,000 units. If the company receives 8,000 units of a product, what is the percentage of the warehouse capacity utilized?
A. 80%
B. 80.00%
C. 80.00%
D. 80.00%
Question 2
A firm's production function is given by the equation Q = 2L + 3K, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital invested. If the firm wants to produce 100 units of output, how many labor hours are required if K = 20?
A. 10
B. 20
C. 30
D. 40
Question 3
A company is considering expanding its operations to a new market. The company's management team has identified several potential locations, but they are unsure which one to choose. Which of the following is the most important factor to consider when making this decision?
A. The size of the potential market
B. The level of competition in the market
C. The cost of transportation to the market
D. The availability of raw materials in the market
Question 4
A firm's cost function is given by C = 2L + 3K. If the firm's current inputs are L = 2 and K = 4, what is the total cost?
A. 10
B. 20
C. 30
D. 40
Question 5
A sole trader is a type of business unit that is owned and controlled by one individual. What is the primary advantage of being a sole trader?
A. Flexibility in decision-making
B. Limited liability
C. Easy to set up
D. High level of capital required
Question 6
A firm is considering two different marketing strategies for a new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which strategy is more likely to be successful if the firm has a limited budget?
A. Strategy A is more likely to be successful.
B. Strategy B is more likely to be successful.
C. Both strategies are equally likely to be successful.
D. The success of both strategies cannot be determined with the given information.
Question 7
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
B. Tax benefits
C. Autonomy and flexibility
D. Easy to set up
Question 8
A consumer has a utility function given by the equation U = 2X + 3Y, where U is the utility and X and Y are the quantities of two goods. If the consumer has a budget of ₦1000 and the prices of the goods are ₦200 and ₦300, respectively, how many units of good X can they buy if they want to maximize their utility?
A. 2
B. 3
C. 4
D. 5
Question 9
In a perfectly competitive market, the supply curve is horizontal because
A. Firms can produce any quantity at the same price
B. Firms have no control over market price
C. Firms can produce any quantity at the same price, but with varying costs
D. Firms have no control over market price, but with varying costs
Question 10
A consumer purchases a product for ₦5,000 and pays a 5% sales tax. What is the total amount paid by the consumer?
A. ₦5,250
B. ₦5,250.00
C. ₦5,250.00
D. ₦5,250.00
Question 11
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 total amount of money received from the public?
A. ₦200,000
B. ₦400,000
C. ₦600,000
D. ₦800,000
Question 12
A company is a type of business unit that is owned and controlled by shareholders. What is the primary advantage of being a company?
A. Limited liability
B. Flexibility in decision-making
C. Easy to set up
D. High level of capital required
Question 13
A company is considering two different production methods for a new product. Method A requires an initial investment of ₦100,000 and produces 100 units of the product per day. Method B requires an initial investment of ₦200,000 and produces 200 units of the product per day. Which method is more profitable if the company sells each unit of the product for ₦500?
A. Method A is more profitable.
B. Method B is more profitable.
C. Both methods are equally profitable.
D. The profitability of both methods cannot be determined with the given information.
Question 14
A bank offers a loan with an interest rate of 12% per annum compounded annually. If the principal amount is ₦5000, what is the amount after 2 years?
A. ₦11,600
B. ₦12,200
C. ₦13,600
D. ₦14,800
Question 15
The concept of specialization in commerce refers to the process by which a firm focuses on producing a specific product or service, thereby increasing its efficiency and reducing costs. Which of the following is a benefit of specialization?
A. Increased competition
B. Improved quality control
C. Reduced production costs
D. Increased market share

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: