POST UTME COVENANT UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader is considering the purchase of a new piece of equipment for their business. Which of the following is a key consideration?
A. The cost of the equipment
B. The potential return on investment
C. The impact on cash flow
D. The effect on tax liability
Question 2
A company is exporting goods to a foreign country. The company has a 10% chance of losing the shipment due to customs delays. If the company has a 100,000 insurance policy, what is the expected value of the loss?
A. 10,000
B. 20,000
C. 30,000
D. 40,000
Question 3
A company's production function is given by Q = 100L^0.5K^0.5, 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 100 units to 121 units, and its capital input from 100 units to 121 units, by how many percentage points will the quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A company is considering implementing a total quality management (TQM) system to improve its product quality. The company has identified several potential benefits of TQM, including improved product quality, increased customer satisfaction, and reduced costs. However, the company is also aware of several potential drawbacks, including increased training costs, higher quality control costs, and reduced product availability. Which of the following is a key consideration for the company when deciding whether to implement TQM?
A. The company's ability to reduce its training costs
B. The company's ability to improve product quality
C. The company's ability to increase customer satisfaction
D. The company's ability to reduce its quality control costs
Question 5
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is given by MR = 200 - 4P, find the price at which the firm's marginal revenue equals its marginal cost.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 6
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. If the warehouse is currently 70% full, what is the probability that the company will be able to fulfill the order without exceeding the warehouse's capacity?
A. 0.7
B. 0.8
C. 0.9
D. 1.0
Question 7
A warehouse is using a first-in, first-out (FIFO) inventory management system. If the warehouse receives a new shipment of goods on day 5, and the oldest shipment was received on day 1, what is the probability that the new shipment will be sold before the oldest shipment?
A. 0.5
B. 0.75
C. 0.25
D. 0.1
Question 8
A foreign trade agreement between two countries involves the exchange of
A. Goods and services
B. Currency and commodities
C. Intellectual property and technology
D. All of the above
Question 9
A company is considering two insurance options for its products: Option A, which has a premium of ₦50,000 and a deductible of ₦10,000, and Option B, which has a premium of ₦30,000 and a deductible of ₦5,000. If the company expects to incur a loss of ₦20,000, which option is more cost-effective?
A. Option A
B. Option B
C. Option A is more cost-effective
D. Option B is more cost-effective
Question 10
A foreign trade agreement between two countries involves the exchange of 1000 units of Product A for 1200 units of Product B. If the exchange rate is 1:1.2, and the value of Product A is ₦100 per unit, what is the total value of the trade in naira?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 11
The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. Prohibition of false or misleading advertisements
B. Establishment of the Consumer Protection Council
C. Compulsory labeling of products
D. Prohibition of price-fixing agreements
Question 12
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. If the warehouse is currently 70% full, what is the probability that the company will be able to fulfill the order without exceeding the warehouse's capacity?
A. 0.7
B. 0.8
C. 0.9
D. 1.0
Question 13
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. If the warehouse is currently 70% full, what is the probability that the company will be able to fulfill the order without exceeding the warehouse's capacity?
A. 0.7
B. 0.8
C. 0.9
D. 1.0
Question 14
A company is considering two transportation options: Option A involves a 2-day journey by truck, while Option B involves a 1-day journey by air. If the company values its time at 1,000 per day, which option is more cost-effective?
A. Option A
B. Option B
C. Both options are equally cost-effective
D. Neither option is cost-effective
Question 15
A consumer protection agency has received a complaint about a company that is selling a product with a misleading label. The label claims that the product is '100% natural' when, in fact, it contains a significant amount of artificial ingredients. The agency wants to determine whether the company's actions constitute a violation of consumer protection laws. Which of the following is a key factor in determining whether the company's actions are a violation of consumer protection laws?
A. The company's intention to deceive consumers
B. The presence of artificial ingredients in the product
C. The company's failure to disclose the presence of artificial ingredients
D. The product's labeling as '100% natural'

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