POST UTME WELLSPRING UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). Which of the following is a key principle of GAAP?
A. The matching principle
B. The revenue recognition principle
C. The cost principle
D. The going concern principle
Question 2
In a perfectly competitive market, the law of one price dictates that the price of a commodity will be the same everywhere, ceteris paribus. However, in reality, prices may differ due to various factors such as transportation costs, taxes, and market conditions. Which of the following is a correct statement regarding the law of one price?
A. The law of one price is a fundamental concept in microeconomics that explains the relationship between supply and demand.
B. The law of one price is a market equilibrium concept that assumes perfect competition and homogeneous products.
C. The law of one price is a theory that explains why prices of identical goods may differ in different markets.
D. The law of one price is a concept that assumes that all firms have the same cost structure and produce homogeneous products.
Question 3
A sole trader's business is affected by the economic downturn, leading to a decline in sales. Which of the following financial ratios would be most useful in assessing the business's liquidity position?
A. Current ratio
B. Quick ratio
C. Debt-to-equity ratio
D. Return on investment ratio
Question 4
A country has a trade deficit of 100 billion and a current account deficit of 50 billion. What is the likely cause of the trade deficit?
A. Overvaluation of the domestic currency
B. Undervaluation of the domestic currency
C. High interest rates in the domestic country
D. Low interest rates in the domestic country
Question 5
A company has two production lines, A and B, with production costs of 100 and 150 per unit, respectively. If the company produces 1000 units, what is the total production cost?
A. 100,000
B. 120,000
C. 150,000
D. 180,000
Question 6
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of labor hours, and H is the number of hours of capital. If the firm wants to increase its production by 20%, what percentage increase in labor hours is required, assuming that the number of hours of capital remains constant?
A. 10%
B. 15%
C. 20%
D. 25%
Question 7
A company is considering investing in a new project. Which of the following is a key consideration for the company?
A. The project's potential return on investment
B. The project's potential impact on the company's reputation
C. The project's potential impact on the company's financial resources
D. The project's potential impact on the company's employees
Question 8
A sole trader is considering expanding its business by taking on a partner. What are the potential advantages of this decision?
A. Increased financial resources
B. Improved decision-making
C. Enhanced reputation
D. All of the above
Question 9
A consumer has purchased a product that has been damaged in transit. What is the consumer's right under the Consumer Protection Act?
A. To return the product for a full refund
B. To exchange the product for a similar one
C. To claim compensation for the damage
D. To cancel the contract
Question 10
A company has a fleet of vehicles for transporting goods. Which of the following is a benefit of using a private car for business purposes?
A. Increased productivity
B. Reduced fuel costs
C. Improved customer service
D. Tax benefits
Question 11
A company is considering two marketing strategies: one that targets a niche market with a high-end product and another that targets a mass market with a low-end product. Which strategy is more likely to result in higher sales and profits?
A. Niche market strategy
B. Mass market strategy
C. Both strategies are equally effective
D. Neither strategy is effective
Question 12
A firm has a production function given by Q = 2L^0.5K^0.5. If the firm has 100 units of labor and 200 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 4
Question 13
A company has been sued by a consumer for breach of contract. What is the company's defense under the Sale of Goods Act?
A. That the consumer was aware of the defect
B. That the defect was not a result of the company's negligence
C. That the consumer had breached the contract
D. That the contract was void ab initio
Question 14
A firm is considering two different marketing strategies for promoting a new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the firm expects to sell 10,000 units, which strategy should it choose?
A. Strategy A, as it is likely to increase sales and revenue.
B. Strategy B, as it is likely to reduce costs and increase profit margins.
C. Strategy A, as it is likely to reduce costs and increase profit margins.
D. Strategy B, as it is likely to increase sales and revenue.
Question 15
A company is considering two different insurance policies to protect against risks associated with its business operations. Policy A has a premium of ₦500,000 and a deductible of ₦100,000, while Policy B has a premium of ₦750,000 and a deductible of ₦50,000. If the company expects to incur a loss of ₦1 million, which policy should it choose?
A. Policy A, as it has a lower premium and deductible.
B. Policy B, as it has a higher premium but a lower deductible.
C. Policy A, as it has a higher deductible but a lower premium.
D. Policy B, as it has a lower deductible but a higher premium.

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