POST UTME AL-HIKMAH UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's articles of association may provide for the appointment of a secretary. What is the primary responsibility of a secretary?
A. To manage the company's day-to-day operations
B. To prepare the company's financial statements
C. To represent the company in legal matters
D. To maintain the company's statutory records
Question 2
In a perfectly competitive market, the supply curve is perfectly elastic. What is the implication of this for the firm's ability to influence the market price?
A. The firm has significant market power to influence the market price.
B. The firm has no ability to influence the market price.
C. The firm's ability to influence the market price is uncertain.
D. The firm's ability to influence the market price depends on the market structure.
Question 3
A firm is considering expanding its product line to include a new product. The new product has a higher price elasticity of demand than the firm's existing products. What is the implication of this for the firm's pricing strategy?
A. The firm should increase the price of the new product.
B. The firm should decrease the price of the new product.
C. The firm should maintain the same price for the new product.
D. The firm should consider the price elasticity of demand for the new product when setting its price.
Question 4
A firm is considering using a new marketing strategy to increase sales. The new strategy involves offering a discount to customers who purchase a certain product. What is the primary goal of this marketing strategy?
A. To increase the price of the product
B. To increase the quantity sold of the product
C. To increase the profit margin of the product
D. To decrease the marketing expenses of the product
Question 5
A company is considering outsourcing its production to a foreign country. The company expects to save on labor costs but is concerned about the potential risks associated with outsourcing. What is the primary risk associated with outsourcing?
A. Loss of control over production
B. Increased labor costs
C. Decreased product quality
D. Increased risk of intellectual property theft
Question 6
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. shift to the left
Question 7
A company's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to increase its output by 20%, what percentage increase in labor and capital is required?
A. 10% increase in labor and 10% increase in capital.
B. 20% increase in labor and 20% increase in capital.
C. 30% increase in labor and 30% increase in capital.
D. 40% increase in labor and 40% increase in capital.
Question 8
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied of that commodity will
A. increase
B. decrease
C. remain constant
D. move in the opposite direction
Question 9
A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are the prices of two goods, Q1 and Q2 are the quantities of the two goods consumed, and I is the consumer's income. If the consumer's income is 100, the price of good 1 is 5, and the price of good 2 is 10, then the consumer's budget line will have a slope of
A. -0.5
B. -1
C. -2
D. -5
Question 10
A sole trader has a business income of ₦1,500,000 and a business expense of ₦800,000. What is the sole trader's profit before tax?
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 11
A company purchases a liability insurance policy to protect against potential lawsuits. The policy has a premium of ₦100,000 per year. If the company expects to pay out ₦500,000 in claims per year, what is the expected value of the insurance policy?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 12
A bank has a reserve requirement of 10% and a cash reserve of ₦1,000,000. If the bank's total deposits are ₦10,000,000, what is the bank's required reserve?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 13
A sole trader's business is considered a separate legal entity from the owner's personal assets. Which of the following is a characteristic of a sole trader's business?
A. Unlimited liability
B. Separate legal entity
C. Partnership
D. Limited liability
Question 14
A company is considering two different production processes for a new product. Process A has a higher fixed cost but a lower variable cost, while Process B has a lower fixed cost but a higher variable cost. Which process should the company choose if it expects to produce 10,000 units?
A. Process A
B. Process B
C. It depends on the company's expectations for future production levels.
D. The company should choose the process with the lower total cost.
Question 15
A company's memorandum of association may provide for the issue of preference shares. What is the primary characteristic of preference shares?
A. They have a fixed dividend rate
B. They have a voting right
C. They have a priority claim on assets
D. They are redeemable at the option of the company

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