POST UTME VERITAS UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a warehouse with a capacity of 1,000 units. However, due to a shortage of storage space, the company can only store 800 units. What is the name of the inventory management concept that the company is experiencing?
A. Inventory Turnover
B. Stockout
C. Overstocking
D. Inventory Management
Question 2
A company has a debt-to-equity ratio of 0.8. If the company's total debt is ₦6,000,000, what is the company's total equity?
A. ₦7,500,000
B. ₦8,000,000
C. ₦8,500,000
D. ₦9,000,000
Question 3
A sole trader, Mr. A, sells goods worth ₦100,000 in a year. His expenses are ₦20,000. What is his profit?
A. ₦80,000
B. ₦90,000
C. ₦80,000
D. ₦90,000
Question 4
A consumer protection agency has received a complaint from a customer who was sold a defective product. The product was purchased for ₦50,000, and the customer is seeking a refund. The product was sold with a one-year warranty. Using the Consumer Protection Act, determine the customer's entitlement to a refund.
A. The customer is entitled to a full refund.
B. The customer is entitled to a partial refund.
C. The customer is not entitled to a refund.
D. The customer must pay for the repair of the product.
Question 5
A company has a production process that involves the use of raw materials, labor, and capital. What is the name of the production concept that the company is experiencing?
A. Production Function
B. Production Process
C. Production Costs
D. Production Efficiency
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 400 units of output, and the wage rate is ₦50 per hour, and the rental rate is ₦20 per unit of capital, what is the optimal combination of labor and capital?
A. L = 100, K = 100
B. L = 50, K = 200
C. L = 200, K = 50
D. L = 100, K = 200
Question 7
A sole trader has a business that generates an annual turnover of ₦1 million. The sole trader's expenses include ₦200,000 for rent, ₦150,000 for utilities, and ₦50,000 for marketing. Using the cash flow statement, calculate the sole trader's net cash flow for the year.
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 8
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to produce 400 units of output, and the wage rate is ₦50 per hour, and the rental rate is ₦20 per unit of capital, what is the optimal combination of labor and capital?
A. L = 100, K = 100
B. L = 50, K = 200
C. L = 200, K = 50
D. L = 100, K = 200
Question 9
A company's sole trader is responsible for all the profits and losses of the business. What is the name of this type of business organization?
A. Partnership
B. Limited Liability Company
C. Sole Trader
D. Cooperative Society
Question 10
A company is considering the purchase of a new machine that costs ₦5 million. The machine is expected to generate additional revenue of ₦2 million per year for 5 years. If the company's cost of capital is 15% per annum, what is the net present value of the investment?
A. ₦1.5 million
B. ₦2 million
C. ₦2.5 million
D. ₦3 million
Question 11
A company's marketing mix is given by the 4 Ps: Product, Price, Place, and Promotion. If the company wants to increase sales, which of the following would be the most effective strategy?
A. Increase the price of the product
B. Improve the quality of the product
C. Increase the advertising budget
D. Improve the distribution channels
Question 12
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal cost is ₦20, and the fixed cost is ₦100, what is the optimal price and quantity?
A. P = ₦40, Q = 60
B. P = ₦30, Q = 70
C. P = ₦20, Q = 80
D. P = ₦10, Q = 90
Question 13
A company has a debt of ₦10 million and an equity of ₦20 million. If the company's debt-to-equity ratio is 0.5, what is the company's total capital?
A. ₦15 million
B. ₦20 million
C. ₦25 million
D. ₦30 million
Question 14
A company's marketing strategy involves creating a sense of urgency among its customers. Which of the following tactics is most likely to achieve this goal?
A. Offering a limited-time discount
B. Creating a sense of scarcity
C. Providing excellent customer service
D. Using social media to promote the product
Question 15
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's current level of labor and capital are L = 4 and K = 9, respectively, what is the firm's current level of output?
A. 13
B. 15
C. 17
D. 19

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