POST UTME ABU 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's Memorandum of Association (MOA) is a document that outlines the company's
A. Business objectives
B. Share capital structure
C. Directors' powers and duties
D. All of the above
Question 2
A company has a production function Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the company wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A company is considering exporting its products to a foreign market. Which of the following is a key factor to consider when deciding whether to export?
A. Market size
B. Transportation costs
C. Tariffs and trade barriers
D. Currency exchange rates
Question 4
A company's financial statements are audited annually by an independent auditor. What is the primary purpose of this audit?
A. To ensure compliance with tax laws
B. To verify the accuracy of financial statements
C. To identify areas for cost reduction
D. To provide consulting services
Question 5
A company's Memorandum of Association (MOA) is a document that outlines the company's
A. Business objectives
B. Share capital structure
C. Directors' powers and duties
D. All of the above
Question 6
A company's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 4 to 9 units, and its capital input from 16 to 25 units, by how many percentage points will its quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 7
A company's Memorandum of Association (MOA) and Articles of Association (AOA) together form the company's
A. Constitution
B. Bylaws
C. Rules and regulations
D. All of the above
Question 8
A company is a type of business organization that is owned and operated by shareholders. What are the characteristics of a company?
A. Limited liability for the shareholders
B. Flexibility in decision-making
C. Separation of ownership and management
D. All of the above
Question 9
A company's cost function is given by C = 2Q^2 + 10Q, where C is the total cost and Q is the quantity produced. If the company produces 10 units, what is its total cost?
A. 120
B. 150
C. 180
D. 210
Question 10
A sole trader's business is considered a separate legal entity from its owner. Which of the following is a characteristic of a sole trader's business?
A. Unlimited liability
B. Separate legal entity
C. No liability
D. No tax benefits
Question 11
A company uses the FIFO method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the ending inventory is ₦1,200,000. If the company uses a periodic inventory system, what is the cost of goods sold?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 12
A company's Articles of Association (AOA) is a document that outlines the company's
A. Share capital structure
B. Directors' powers and duties
C. Management structure
D. All of the above
Question 13
A company has a total of ₦5,000,000 in assets and ₦2,000,000 in liabilities. What is the company's equity?
A. ₦3,000,000
B. ₦3,000,000
C. ₦3,000,000
D. ₦3,000,000
Question 14
A sole trader is a type of business organization that is owned and operated by one individual. What are the advantages of this type of business organization?
A. Easy to set up and manage
B. Limited liability for the owner
C. Flexibility in decision-making
D. All of the above
Question 15
The concept of 'agency' in consumer protection law refers to the ability of a consumer to act on their own behalf in a transaction. Which of the following best describes the implications of this concept?
A. Increased responsibility for the consumer in case of a dispute
B. Reduced liability for the seller in case of a dispute
C. Greater protection for the consumer from unfair business practices
D. No impact on the consumer's rights and responsibilities

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