POST UTME CHRISTOPHER UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is registered with the Corporate Affairs Commission (CAC). What is the sole trader required to do under the Companies and Allied Matters Act?
A. Keep business records for 5 years
B. File annual returns with the CAC
C. Hold an annual general meeting
D. All of the above
Question 2
A company is considering exporting its products to a foreign market. What type of trade is this?
A. Import
B. Export
C. Domestic trade
D. International trade
Question 3
A firm's decision to export goods to a foreign market is influenced by the following factors, EXCEPT:
A. Government policies and regulations
B. Market demand and competition
C. Transportation costs and logistics
D. Cultural and social factors
Question 4
A company's risk management strategy involves diversification of its investments across various asset classes. If the company's portfolio consists of stocks, bonds, and real estate, what type of risk is being managed?
A. Market risk
B. Credit risk
C. Liquidity risk
D. Operational risk
Question 5
A firm is considering investing in a new project that has a net present value (NPV) of ₦150,000 and a payback period of 3 years. If the firm's cost of capital is 12%, what is the internal rate of return (IRR) of the project?
A. 15%
B. 18%
C. 20%
D. 22%
Question 6
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
A. The sole trader is exempt from paying taxes.
B. The sole trader is not liable for any business debts.
C. The sole trader's business is not recognized by law.
D. The sole trader is not required to keep business records.
Question 7
A firm's demand function is given by Q = 100 - 2P. If the firm's price is 50, what is the firm's revenue?
A. 2500
B. 3000
C. 3500
D. 4000
Question 8
A consumer protection law requires businesses to provide clear and accurate information about their products. What is the purpose of this law?
A. To protect consumers from false advertising
B. To promote fair competition among businesses
C. To ensure product safety and quality
D. To regulate business practices
Question 9
A company's articles of association may be amended by a special resolution passed by a two-thirds majority vote of its members. True or False?
A. True
B. False
C. Depends on the type of company
D. Not applicable
Question 10
A consumer purchases a product for ₦10,000. If the product is defective and the consumer returns it, what is the consumer entitled to under the Consumer Protection Act?
A. A full refund of ₦10,000
B. A partial refund of ₦5,000
C. A replacement product of the same value
D. No refund or replacement
Question 11
A firm's supply function is given by Q = 2P. If the firm's price is 50, what is the firm's quantity supplied?
A. 100
B. 200
C. 300
D. 400
Question 12
A bank has a reserve requirement of 10% and a cash reserve ratio of 20%. If it has ₦100,000 in reserves and ₦500,000 in deposits, what is the maximum amount of loans it can make?
A. ₦80,000
B. ₦120,000
C. ₦150,000
D. ₦200,000
Question 13
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 50,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 14
A country has a trade deficit of 100 million and a balance of payments deficit of 200 million. If the country's exchange rate is 1 = ₦200, what is the value of the trade deficit in naira?
A. ₦20 billion
B. ₦25 billion
C. ₦30 billion
D. ₦35 billion
Question 15
A sole trader is considering hiring an employee to help with the business. What type of business unit is this?
A. Sole trader
B. Partnership
C. Limited company
D. Sole trader with employee

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