POST UTME VERITAS UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company produces two products, A and B. Product A requires 2 hours of labor and 1 hour of machine time, while product B requires 1 hour of labor and 2 hours of machine time. If the company has 8 hours of labor and 6 hours of machine time available, how many units of product A and product B should it produce to maximize profit?
A. 10 units of A and 6 units of B.
B. 8 units of A and 4 units of B.
C. 6 units of A and 2 units of B.
D. 4 units of A and 8 units of B.
Question 2
A company is considering a new production process that will increase its output by 20% but also increase its costs by 15%. Using the concept of opportunity cost, what is the minimum increase in revenue required to justify the new production process?
A. 5%
B. 10%
C. 15%
D. 20%
Question 3
A company is considering a new production process that will increase its output by 15% but also increase its costs by 10%. Using the concept of opportunity cost, what is the minimum increase in revenue required to justify the new production process?
A. 12.5%
B. 15%
C. 17.5%
D. 20%
Question 4
A firm is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales promotions. If the firm's current advertising expenditure is ₦100,000 and its current sales promotions expenditure is ₦50,000, what is the total increase in expenditure under Strategy B?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 5
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
A. The business is not liable for any debts incurred.
B. The business is not entitled to claim any tax relief.
C. The business is not required to file annual returns.
D. The business is not entitled to use the word 'Limited' in its name.
Question 6
A consumer purchases a product with a warranty period of 2 years. The product has a defect after 1 year and 6 months. What is the consumer's entitlement under the warranty?
A. The consumer is entitled to a full refund
B. The consumer is entitled to a partial refund
C. The consumer is entitled to a replacement product
D. The consumer is not entitled to any warranty claim
Question 7
A company has a policy of maintaining a cash reserve of 20% of its total assets. If the company has total assets of ₦1,000,000, how much cash should it maintain in its reserve?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 8
A consumer protection agency is investigating a complaint about a company's warranty policy. The company offers a 1-year warranty on its products, but the consumer claims that the warranty period is too short. Using the concept of consumer protection, what is the minimum warranty period that the company should offer?
A. 2 years
B. 3 years
C. 5 years
D. 10 years
Question 9
A company imports goods worth ₦1,000,000 from a foreign country. If the company pays a 10% customs duty on the imported goods, how much will the company pay in total?
A. ₦1,100,000
B. ₦1,000,000
C. ₦900,000
D. ₦800,000
Question 10
A consumer protection law requires that all products sold in a particular market must have a minimum warranty period of 2 years. If a company sells a product with a warranty period of 1 year, what is the company's liability under the consumer protection law?
A. ₦0
B. ₦10,000
C. ₦20,000
D. ₦50,000
Question 11
A sole trader, Mr. A, has a business that generates an average profit of ₦500,000 per annum. If he wants to expand his business and increase his profit by 20%, what will be his new average profit?
A. ₦600,000
B. ₦500,000
C. ₦400,000
D. ₦300,000
Question 12
A firm'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 firm increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, what is the percentage change in the quantity produced?
A. 10%
B. 20%
C. 30%
D. 40%
Question 13
A company has two warehouses, A and B, with capacities of 1000 and 500 units respectively. Warehouse A has 800 units of stock, while warehouse B has 200 units. If the company wants to transfer 300 units from warehouse A to warehouse B, what is the new total capacity of warehouse A?
A. 1200
B. 1000
C. 800
D. 600
Question 14
A company has a marketing budget of ₦500,000. If the company wants to allocate 20% of the budget to advertising and 30% to promotion, what will be the total amount allocated to these two activities?
A. ₦200,000
B. ₦150,000
C. ₦100,000
D. ₦50,000
Question 15
A company has a production line that produces 500 units of a product per day. If the company wants to increase production by 15% and the production line operates for 20 days, how many units will be produced in total?
A. 10,500
B. 10,000
C. 9,500
D. 9,000

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