POST UTME UNN 2017 Commerce | Objective

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Question 1
A firm imports goods worth ₦1,000,000. The firm pays a customs duty of 10% on the value of the goods. What is the amount of customs duty paid?
A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000
Question 2
A company's transport and communication involves the movement of goods and information. Which of the following is a mode of transport?
A. Road transport
B. Rail transport
C. Air transport
D. Water transport
Question 3
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 productivity. Which of the following is a characteristic of specialization?
A. Increased competition
B. Reduced production costs
C. Improved product quality
D. Increased market share
Question 4
The 'law of diminishing marginal utility' states that?
A. as the quantity of a good consumed increases, the marginal utility derived from it also increases
B. as the quantity of a good consumed increases, the marginal utility derived from it remains constant
C. as the quantity of a good consumed increases, the marginal utility derived from it decreases
D. as the quantity of a good consumed increases, the marginal utility derived from it becomes zero
Question 5
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 6
A company's production process involves the transformation of raw materials into finished goods. Which of the following is an example of a production function?
A. Cost Function
B. Revenue Function
C. Production Function
D. Profit Function
Question 7
A bank is a financial institution that provides various financial services to its customers. What is the main function of a bank?
A. To provide loans to customers
B. To accept deposits from customers
C. To provide investment services to customers
D. All of the above
Question 8
A company has a production function Q = 2L^0.5K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the optimal combination of labor and capital that minimizes the cost of production?
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 15, K = 15
D. L = 25, K = 5
Question 9
A firm's revenue is maximized when its?
A. marginal revenue equals marginal cost
B. marginal revenue equals average revenue
C. marginal cost equals average cost
D. marginal revenue equals price
Question 10
A bank customer deposits ₦100,000 into a savings account. The bank pays an interest rate of 5% per annum. What is the interest earned by the customer after one year?
A. ₦5,000
B. ₦5,250
C. ₦5,500
D. ₦5,750
Question 11
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is a characteristic of a sales promotion?
A. Offering a discount on a product
B. Creating a new product
C. Using social media to promote a product
D. Hiring a new salesperson
Question 12
A firm is considering two investment projects. Project A has a 10% chance of generating ₦100,000 and a 90% chance of generating ₦0. Project B has a 20% chance of generating ₦80,000 and an 80% chance of generating ₦0. 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 13
A business owner purchases an insurance policy to protect against losses due to fire. What type of risk is being managed?
A. Pure Risk
B. Speculative Risk
C. Business Risk
D. Financial Risk
Question 14
A firm is considering two investment projects. Project A has a 10% chance of generating ₦100,000 and a 90% chance of generating ₦0. Project B has a 20% chance of generating ₦80,000 and an 80% chance of generating ₦0. 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 15
A company's Memorandum of Association (MoA) is a document that outlines the company's objectives, structure, and management. True or False?
A. True
B. False
C. Partially true
D. Not applicable

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