POST UTME WELLSPRING UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has the following utility function: U(x,y) = 2x + 3y. If the prices of x and y are ₦5 and ₦3 respectively, and the consumer has a budget of ₦20, what is the optimal consumption bundle?
A. (2,4)
B. (4,2)
C. (3,3)
D. (1,5)
Question 2
A sole trader has a business income of ₦500,000 and a business expense of ₦200,000. What is the sole trader's business profit?
A. ₦300,000
B. ₦300,001
C. ₦300,002
D. ₦300,003
Question 3
The concept of 'limited liability' is a fundamental principle of which business unit?
A. Sole Trade
B. Partnership
C. Company
D. Cooperative
Question 4
A company has the following data on its stock prices: Initial price = ₦100, Current price = ₦120, and Dividend yield = 5%. What is the expected return on investment?
A. 10%
B. 12%
C. 15%
D. 18%
Question 5
A consumer protection law that prohibits unfair contract terms is the
A. Unfair Contract Terms Act
B. Consumer Protection Act
C. Sale of Goods Act
D. Supply of Goods and Services Act
Question 6
A company's production function is given by the equation Q = 2L^2 + 5K, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the company wants to produce 100 units of output, how many labor hours are required if the amount of capital is 10?
A. 20 labor hours
B. 30 labor hours
C. 40 labor hours
D. 50 labor hours
Question 7
A company's marketing strategy involves the use of social media platforms to promote its products. What type of communication channel is being used?
A. Print Media
B. Electronic Media
C. Digital Media
D. Personal Selling
Question 8
A sole trader's business is considered a separate legal entity from its owner. Which of the following best describes this concept?
A. Separate legal entity
B. Unlimited liability
C. No separate legal entity
D. No unlimited liability
Question 9
A company's memorandum of association is a document that outlines the company's
A. Objects and powers
B. Share capital and shareholding
C. Directors and their powers
D. All of the above
Question 10
A company's marketing strategy involves creating a brand identity that is perceived as luxurious and exclusive. Which of the following is a key element of this strategy?
A. Targeting a high-end demographic
B. Using high-quality packaging
C. Creating a sense of scarcity
D. Offering discounts and promotions
Question 11
A bank's primary function is to act as a financial intermediary between savers and borrowers. What type of financial institution is this?
A. Commercial Bank
B. Investment Bank
C. Central Bank
D. Development Bank
Question 12
A company is considering launching a new product in a foreign market. The company has estimated the following demand function for the product: Q = 100 - 2P. If the company wants to maximize its revenue, what price should it charge for the product?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
A company has the following data on its production costs: Fixed costs = ₦100,000, Variable costs = ₦50x, and Total revenue = ₦150x. What is the break-even point?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 14
A sole trader's business is affected by a natural disaster, resulting in significant financial losses. What type of insurance policy can the sole trader claim to recover losses?
A. Business Interruption Insurance
B. Public Liability Insurance
C. Professional Indemnity Insurance
D. Employers' Liability Insurance
Question 15
A company uses a first-in-first-out (FIFO) inventory system. If the company has 100 units of a product with a cost of ₦50 per unit and 50 units of the same product with a cost of ₦60 per unit, what is the average cost per unit of the product?
A. ₦52.50
B. ₦53.00
C. ₦53.50
D. ₦54.00

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