POST UTME VERITAS UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. If the consumer's current consumption bundle is (x,y) = (4,2), what is the consumer's current level of utility?
A. 14
B. 16
C. 18
D. 20
Question 2
A consumer is considering purchasing a new product. The product has a price of ₦500 and a quality rating of 8 out of 10. Which of the following is a correct example of a consumer behavior model?
A. The Theory of Planned Behavior
B. The Theory of Reasoned Action
C. The Theory of Cognitive Dissonance
D. The Theory of Social Learning
Question 3
A company X has a paid-up capital of ₦5,000,000. The company issues 10,000 ordinary shares of ₦500 each. What is the company's capital structure?
A. ₦5,000,000 in equity and ₦0 in debt
B. ₦5,000,000 in debt and ₦0 in equity
C. ₦5,000,000 in equity and ₦0 in debt
D. ₦5,000,000 in debt and ₦0 in equity
Question 4
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. It is not a separate legal entity
Question 5
A company's financial statements show that its assets have increased by 20% and its liabilities have increased by 15%. What is the change in its equity?
A. 5%
B. 10%
C. 15%
D. 20%
Question 6
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a characteristic of a sole trader?
A. Limited liability
B. Unlimited liability
C. Separate legal entity
D. No partnership
Question 7
A bank's reserve requirement is 10%. If the bank has a cash reserve of ₦1,000,000, what is the maximum amount of loans the bank can make?
A. ₦9,000,000
B. ₦10,000,000
C. ₦11,000,000
D. ₦12,000,000
Question 8
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. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
B. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
C. Country A produces 100 units of good X and 100 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 50 units of good Y, while Country B produces 100 units of good X and 100 units of good Y.
Question 9
A firm's cost function is given by C(L,K) = 2L + 3K. If the firm's current labor and capital inputs are 16 and 9 respectively, what is the firm's current total cost?
A. 50
B. 60
C. 70
D. 80
Question 10
In a sole trade business, what is the primary advantage of using a sole trader as a business structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Flexibility in decision-making
Question 11
A company's articles of association may provide for the appointment of a managing director. What is the primary responsibility of a managing director?
A. To manage the company's day-to-day operations
B. To make strategic decisions for the company
C. To represent the company in legal matters
D. To prepare the company's financial statements
Question 12
A company's Articles of Association can be amended by a special resolution. True or False?
A. True
B. False
C. It depends on the type of company
D. It depends on the size of the company
Question 13
A firm's cost of capital is 10% and its expected return on investment is 12%. What is the expected rate of return on investment in excess of the cost of capital?
A. 2%
B. 5%
C. 8%
D. 10%
Question 14
A sole trader's business is considered a separate legal entity from its owner. Discuss this statement with reference to the concept of limited liability.
A. The sole trader's business is not a separate legal entity from its owner.
B. The sole trader's business is a separate legal entity from its owner, but the owner has unlimited liability.
C. The sole trader's business is a separate legal entity from its owner, and the owner has limited liability.
D. The concept of limited liability does not apply to sole traders.
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are 16 and 9 respectively, what is the firm's current level of output?
A. 24
B. 32
C. 48
D. 64

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