POST UTME UNIPORT 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's revenue function is given by R = 100P - 2P^2, where R is the revenue and P is the price. If the company wants to maximize its revenue, what price should it charge?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 2
A company's balance sheet is given by Assets = ₦100,000, Liabilities = ₦50,000, and Share Capital = ₦30,000. What is the company's net worth?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 3
A firm's supply function is given by Q = 50 + 2P, where Q is the quantity supplied and P is the price. If the firm wants to maximize its profit, what price should it charge?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 4
A company is considering two different marketing strategies for its 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 should the company choose if it wants to maximize its sales?
A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective
Question 5
A company's financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). What is the main advantage of using GAAP?
A. It provides a common language for financial reporting
B. It allows for easy comparison of financial statements
C. It provides a framework for financial statement preparation
D. It reduces the risk of financial misstatement
Question 6
A company's articles of association may provide for the issue of preference shares. What are the characteristics of preference shares?
A. They have a higher claim on assets than ordinary shares
B. They have a lower claim on assets than ordinary shares
C. They have a fixed dividend rate
D. They have a variable dividend rate
Question 7
In a sole proprietorship, the owner's personal assets are not protected from business liabilities. Which of the following is a correct statement regarding the owner's personal assets?
A. The owner's personal assets are protected from business liabilities.
B. The owner's personal assets are not protected from business liabilities.
C. The owner's personal assets are protected from business liabilities, but only up to a certain amount.
D. The owner's personal assets are not protected from business liabilities, but only in cases of gross negligence.
Question 8
A consumer has a budget of ₦5,000 and is considering purchasing two different products. Product A costs ₦2,000 and Product B costs ₦3,000. If the consumer wants to maximize its utility, which product should it choose?
A. Product A
B. Product B
C. Both products are equally desirable
D. Neither product is desirable
Question 9
A firm is considering two different marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 5% increase in sales force. If the firm's current advertising expenditure is ₦500,000 and its current sales force is 50 employees, what is the total cost of Strategy A?
A. ₦550,000
B. ₦550,000.00
C. ₦550,000.00
D. ₦550,000.00
Question 10
A company is considering two different storage facilities for its inventory. Facility A has a capacity of 10,000 units and a storage cost of ₦5 per unit per month. Facility B has a capacity of 20,000 units and a storage cost of ₦3 per unit per month. If the company expects to store 15,000 units of inventory, which facility should it choose and why?
A. Facility A because it has a lower storage cost.
B. Facility B because it has a higher storage capacity.
C. Facility A because it has a higher storage capacity.
D. Facility B because it has a lower storage cost.
Question 11
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specializing in the production of a good in which it has a comparative advantage.
A. By producing the good at a lower opportunity cost than other countries.
B. By producing the good at a higher opportunity cost than other countries.
C. By producing the good at the same opportunity cost as other countries.
D. By producing the good at a negative opportunity cost.
Question 12
A sole trader's business is registered under the sole traders' register. What is the main advantage of this type of business registration?
A. It provides limited liability protection for the business owner
B. It allows for easy transfer of ownership
C. It is a cost-effective way to register a business
D. It provides a separate legal entity for the business
Question 13
A sole trader has a business income of ₦200,000 and a business expense of ₦150,000. What is the sole trader's business profit?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 14
A company has a policy of paying its employees a bonus of 10% of their annual salary. If an employee's annual salary is ₦1,200,000, what is the bonus amount?
A. ₦120,000
B. ₦120,000.00
C. ₦120,000.00
D. ₦120,000.00
Question 15
An insurance company is considering two different policies for its customers: a life insurance policy and a health insurance policy. The life insurance policy has a premium of 50,000 naira and a coverage of 1 million naira, while the health insurance policy has a premium of 30,000 naira and a coverage of 500,000 naira. If the company wants to maximize its profit, what should it do?
A. Choose the life insurance policy
B. Choose the health insurance policy
C. Choose neither
D. More information is needed

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: