POST UTME UI 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader has a business that sells goods to customers. The sole trader uses a cash accounting system. If the sole trader receives ₦10,000 in cash from a customer on 15th February, and the customer's account is credited on 20th February, what is the effect on the sole trader's cash account?
A. The cash account is debited by ₦10,000
B. The cash account is credited by ₦10,000
C. The cash account is not affected
D. The cash account is debited by ₦5,000
Question 2
A firm's cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are 4 and 9 respectively, what is the firm's total cost?
A. 34
B. 40
C. 46
D. 52
Question 3
A warehouse is storing 500 boxes of goods, each weighing 20 kg. If the warehouse has a maximum capacity of 10,000 kg, what is the maximum number of boxes that can be stored?
A. 250 boxes
B. 300 boxes
C. 400 boxes
D. 500 boxes
Question 4
A firm's foreign trade involves exporting goods to a country with a different currency. What is the primary risk associated with this type of trade?
A. Exchange rate risk
B. Country risk
C. Political risk
D. Operational risk
Question 5
A consumer purchases a product with a defective component. Which of the following laws is most likely to protect the consumer's rights?
A. Consumer Protection Act
B. Sales of Goods Act
C. Contract Act
D. Torts Act
Question 6
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?
A. Nigeria producing cotton and importing textiles
B. Nigeria producing textiles and importing cotton
C. Nigeria producing both cotton and textiles
D. Nigeria importing both cotton and textiles
Question 7
A company is considering the adoption of a new production process. Which of the following production processes is most likely to increase efficiency?
A. Mass production
B. Batch production
C. Job production
D. Flexible manufacturing system
Question 8
A business owner is considering the purchase of insurance to protect against business risks. Which of the following types of insurance is most likely to provide the greatest protection?
A. Liability insurance
B. Property insurance
C. Business interruption insurance
D. Professional indemnity insurance
Question 9
A company's Memorandum of Association contains a clause that restricts the company's power to borrow money. What is the legal effect of this clause?
A. The company can borrow money without restriction
B. The company can borrow money only with the approval of the shareholders
C. The company cannot borrow money at all
D. The company can borrow money only up to a certain amount
Question 10
A company is considering launching a new product line. The product's demand is expected to follow a linear trend. If the initial demand is 100 units and the rate of change is 5 units per year, what is the demand after 3 years?
A. 125
B. 150
C. 175
D. 200
Question 11
A company is a type of business organization that is owned by shareholders and managed by a board of directors. What is the main advantage of a company compared to a sole trader?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. High profit margins
Question 12
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two different goods. The prices of the two goods are ₦50 and ₦75 respectively. If the consumer has a budget of ₦1500, how much should the consumer spend on good x?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 13
A consumer protection agency is investigating a complaint about a company's advertising practices. The company has been accused of making false claims about its products. Which of the following is a legal consequence of the company's actions?
A. The company will be fined ₦1,000,000
B. The company will be required to pay damages to affected consumers
C. The company will be banned from advertising for 6 months
D. The company will be required to recall all affected products
Question 14
A company's insurance policy covers losses due to natural disasters. What is the primary type of risk covered by this policy?
A. Liability risk
B. Property risk
C. Business interruption risk
D. Cyber risk
Question 15
A company is considering launching a new product line. The product's demand is expected to follow a linear trend. If the initial demand is 100 units and the rate of change is 5 units per year, what is the demand after 2 years?
A. 110
B. 115
C. 120
D. 125

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