POST UTME UNIPORT 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's revenue function is given by R = 2x^2 - 3x + 1. If the firm's marginal revenue is 10, what is the optimal quantity to produce?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 2
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?
A. Obtain a Tax Identification Number (TIN)
B. Register with the Corporate Affairs Commission (CAC)
C. Obtain a Business Name Certificate
D. Obtain a Trade License
Question 3
A company is considering the introduction of a new product line. The product requires an initial investment of ₦5 million and is expected to generate annual profits of ₦2 million for the next 5 years. The company's cost of capital is 10% per annum. Using the net present value (NPV) method, calculate the expected return on investment (ROI) for the new product line.
A. 20%
B. 25%
C. 30%
D. 35%
Question 4
A consumer has the following utility function: U(x, y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal consumption bundle?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 5
A company is considering the introduction of a new insurance product. The product requires an initial investment of ₦1 million and is expected to generate annual profits of ₦500,000 for the next 3 years. The company's cost of capital is 12% per annum. Using the concept of risk management, determine the expected return on investment (ROI) for the new insurance product.
A. 20%
B. 25%
C. 30%
D. 35%
Question 6
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specialization in production, given its comparative advantage.
A. By producing goods and services that it can produce at a lower opportunity cost than other countries.
B. By producing goods and services that are in high demand in other countries.
C. By producing goods and services that are not produced by other countries.
D. By producing goods and services that are produced by other countries at a higher opportunity cost.
Question 7
A firm has the following production function: Q = 2L^0.5K^0.5. If the firm wants to produce 100 units of output, and the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, what is the minimum cost of production?
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 8
A warehouse's main function is to
A. store goods
B. transport goods
C. sell goods
D. produce goods
Question 9
A bank's liquidity ratio is calculated as the ratio of its liquid assets to its total deposits. If a bank has ₦120 million in liquid assets and ₦180 million in total deposits, what is its liquidity ratio?
A. 0.67
B. 0.50
C. 0.75
D. 0.33
Question 10
A consumer has the following budget constraint: 2x + 3y = 100. If the consumer's utility function is U(x, y) = 2x + 3y, what is the consumer's optimal consumption bundle?
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 50, y = 0
Question 11
A company in Nigeria is planning to expand its operations to a new market. The company has identified several potential suppliers, but it is unsure which one to choose. What is the best approach for the company to take?
A. Conduct a thorough market analysis and evaluate the suppliers based on their reputation, quality, and price
B. Choose the supplier with the lowest price
C. Choose the supplier with the highest reputation
D. Choose the supplier with the fastest delivery time
Question 12
A consumer in Nigeria purchases a product online from a foreign retailer. The product is defective, and the consumer returns it to the retailer, who refuses to replace it or refund the purchase price. What is the consumer's next course of action?
A. File a complaint with the Nigerian Consumer Protection Council
B. Sue the retailer in a Nigerian court
C. Seek mediation from a consumer protection agency
D. Negotiate a settlement with the retailer
Question 13
A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.
A. The owner's personal assets are protected from business liabilities.
B. The owner's personal assets are at risk of being seized to settle business debts.
C. The business is not required to pay taxes on its profits.
D. The business is not required to file annual returns with the relevant authorities.
Question 14
A consumer purchases a product for ₦5,000 and pays a deposit of ₦1,000. If the product is returned within 30 days, the consumer is entitled to a full refund. What is the amount the consumer is entitled to if the product is returned within 30 days?
A. ₦4,000
B. ₦4,500
C. ₦5,000
D. ₦5,500
Question 15
A company's insurance policy covers losses due to fire, theft, and liability. However, the policy excludes losses due to flood and earthquake. What is the legal effect of this exclusion?
A. The exclusion is valid and the company is not entitled to claim for losses due to flood and earthquake.
B. The exclusion is invalid and the company is entitled to claim for losses due to flood and earthquake.
C. The exclusion is valid but the company can still claim for losses due to flood and earthquake if it can prove that the losses were not caused by the excluded events.
D. The exclusion is invalid but the company must still pay the premium for the excluded events.

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