POST UTME BOWEN UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are still at risk in case of business debts. What is the name of this type of risk?
A. Unlimited Liability
B. Limited Liability
C. Joint Liability
D. Personal Liability
Question 2
A consumer protection agency has the power to investigate complaints about unfair business practices. Which of the following is an example of an unfair business practice?
A. Misleading advertising
B. Unfair contract terms
C. Breach of warranty
D. Unfair competition
Question 3
A firm's decision to use a particular mode of transportation is influenced by which of the following factors?
A. Cost
B. Speed
C. Reliability
D. All of the above
Question 4
A firm is producing two goods, X and Y, using two inputs, labor and capital. The production function for good X is given by Q_X = 2L^0.5K^0.5, where Q_X is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. The production function for good Y is given by Q_Y = 3L^0.25K^0.75. If the firm is currently using 4 units of labor and 9 units of capital, what is the marginal product of labor for good X?
A. 1.5
B. 2.5
C. 3.5
D. 4.5
Question 5
A firm is considering two investment projects. Project A has a 10% chance of success and a 90% chance of failure, with a payoff of ₦100,000 if it succeeds. Project B has a 20% chance of success and an 80% chance of failure, with a payoff of ₦200,000 if it succeeds. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally likely to succeed
D. Neither project is a good investment
Question 6
A consumer protection agency has the power to order a company to refund money to consumers who have been misled by its advertising. Which of the following is an example of a misleading advertisement?
A. A company that claims its product is 100% effective
B. A company that claims its product is 90% effective
C. A company that claims its product is 80% effective
D. A company that claims its product is 70% effective
Question 7
A company's articles of association can be amended by a majority vote of the shareholders. What is the term for this type of amendment?
A. Ordinary Resolution
B. Special Resolution
C. Extraordinary Resolution
D. Emergency Resolution
Question 8
In the context of international trade, what is the term for the process of reducing a product's price in a foreign market to make it more competitive?
A. Price discrimination
B. Price elasticity
C. Price skimming
D. Price penetration
Question 9
A company has a production function given by ( Q = 2L^2 + 3K ). If the price of labor is ( rac{dL}{dP} = 10 ) and the price of capital is ( rac{dK}{dP} = 5 ), what is the marginal product of labor?
A. ( MP_L = 4L )
B. ( MP_L = 6L )
C. ( MP_L = 8L )
D. ( MP_L = 10L )
Question 10
A business has a production cost of ₦200 per unit and a selling price of ₦500 per unit. What is the profit per unit?
A. ₦300
B. ₦300.00
C. ₦300.00
D. ₦300
Question 11
Under the Consumer Protection Act, what is the primary responsibility of the Consumer Protection Council?
A. To investigate complaints and prosecute offenders
B. To provide education and awareness on consumer rights
C. To regulate and license consumer goods and services
D. To establish and enforce consumer protection standards
Question 12
A company in Nigeria is considering the production of a new product. What is the primary benefit of producing a new product?
A. Increased revenue
B. Improved market share
C. Reduced competition
D. Increased market demand
Question 13
A sole trader's business is affected by the following factors: market conditions, government policies, and competition. Which of the following business units is most closely related to this scenario?
A. Sole Trader
B. Partnership
C. Company
D. Cooperative
Question 14
A firm is considering the introduction of a new marketing strategy. The strategy will require an initial investment of ₦2 million and will generate annual profits of ₦1 million for the next 2 years. If the firm's cost of capital is 10% per annum, what is the net present value (NPV) of the new marketing strategy?
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 15
A company is considering the introduction of a new product line. The product line will require an initial investment of ₦5 million and will generate annual profits of ₦2 million for the next 5 years. If the company's cost of capital is 10% per annum, what is the net present value (NPV) of the new product line?
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000

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