POST UTME UNIBEN 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash flow statement shows the inflows and outflows of its
A. cash and cash equivalents
B. accounts receivable
C. accounts payable
D. inventory
Question 2
A sole trader's business is considered a separate legal entity from its owner. True or False?
A. True
B. False
C. Depends on the jurisdiction
D. Not applicable
Question 3
In a sole proprietorship, the owner's personal assets are protected from business liabilities through which legal concept?
A. Separate Legal Entity
B. Limited Liability
C. Unlimited Liability
D. Partnership
Question 4
A warehouse's inventory management system uses the first-in, first-out (FIFO) method to track stock levels. Explain the advantages of this method.
A. It is easy to implement
B. It is accurate
C. It minimizes stock losses
D. It maximizes stock turnover
Question 5
A firm is considering two investment projects, A and B. Project A has a 10% chance of a 20% return, and a 90% chance of a 5% return. Project B has a 20% chance of a 30% return, and an 80% chance of a 2% return. Which project has a higher expected return?
A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return
Question 6
A country's inflation rate is given by the equation IR = (P1 - P0)/P0, where IR is the inflation rate, P1 is the current price level, and P0 is the previous price level. If the current price level is 100 and the previous price level is 90, what is the inflation rate?
A. 10%
B. 20%
C. 30%
D. 40%
Question 7
The Consumer Protection Act of 1999 provides for the protection of consumers against unfair trade practices. Which of the following is NOT a provision of the Act?
A. Penalty for unfair trade practices
B. Compensation for consumers who suffer losses
C. Establishment of consumer courts
D. Prohibition of consumer education
Question 8
A company's cash flow statement shows a net increase in cash of ₦500,000. What does this indicate about the company's financial performance?
A. The company has increased its profits.
B. The company has decreased its expenses.
C. The company has increased its cash reserves.
D. The company has decreased its debt.
Question 9
A company's articles of association may provide for a different class of shares with different rights and privileges. Explain the purpose of this provision.
A. To attract more investors
B. To give existing shareholders more control
C. To provide a different class of shares with different rights and privileges
D. To reduce the company's liability
Question 10
A firm's supply curve is upward-sloping because as the price of its product increases, it becomes more
A. profitable to produce
B. expensive to produce
C. difficult to produce
D. easy to produce
Question 11
A company's financial leverage ratio is calculated as the ratio of its total debt to its total equity. What is the financial leverage ratio for a company with total debt of ₦500,000 and total equity of ₦1,000,000?
A. 0.5
B. 0.6
C. 0.7
D. 0.8
Question 12
A bank's liquidity ratio is a measure of its ability to meet its short-term obligations. If a bank's current assets are ₦1.5 billion and its current liabilities are ₦1.2 billion, what is its liquidity ratio?
A. 1.25
B. 1.50
C. 1.75
D. 2.00
Question 13
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve
Question 14
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company wants to increase its production by 20%, what percentage increase in labor input is required, ceteris paribus?
A. 10%
B. 20%
C. 30%
D. 40%
Question 15
A firm's return on investment (ROI) is calculated as the ratio of its net income to its total assets. What is the ROI for a firm with a net income of ₦200,000 and total assets of ₦1,000,000?
A. 20%
B. 25%
C. 30%
D. 35%

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