POST UTME DELSU 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a contract of sale, what is the primary responsibility of the seller?
A. To deliver the goods in good condition
B. To provide a warranty for the goods
C. To disclose all defects in the goods
D. To obtain payment from the buyer
Question 2
In a competitive market, a firm's demand curve is downward sloping. What is the likely effect on the firm's profit-maximizing price and quantity?
A. The firm's profit-maximizing price and quantity will increase.
B. The firm's profit-maximizing price will decrease, but quantity will increase.
C. The firm's profit-maximizing price and quantity will decrease.
D. The firm's profit-maximizing price will increase, but quantity will decrease.
Question 3
A sole trader's business is considered a separate legal entity from its owner. Discuss this statement in the context of the Companies and Allied Matters Act (CAMA) 2020.
A. True
B. False
C. Depends on the circumstances
D. Not applicable in Nigeria
Question 4
The following diagram shows a simple circuit with a battery, a resistor, and a switch. If the switch is closed, what will happen to the current flowing through the circuit?
A. The current will increase
B. The current will decrease
C. The current will remain the same
D. The current will become zero
Question 5
A firm's profit function is given by P = R - C, where R is revenue and C is cost. If the firm's revenue is ₦120 and cost is ₦80, what is the profit?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A bank is considering offering a new credit card product to its customers. Which of the following is a key feature of this product?
A. The card has a high credit limit
B. The card has a low interest rate
C. The card has a rewards program
D. The card has a annual fee
Question 7
A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum. If a customer deposits ₦100,000, what is the total amount at the end of the 5-year period?
A. ₦121,092
B. ₦120,000
C. ₦119,000
D. ₦118,000
Question 8
A company has a warehouse with a capacity of 10,000 units. If it receives a shipment of 8,000 units, what is the new capacity?
A. 10,000
B. 8,000
C. 12,000
D. 18,000
Question 9
A firm's revenue is ₦1,000,000, and its total fixed costs are ₦200,000. If the firm's variable costs are 20% of its revenue, what is the firm's profit?
A. ₦400,000
B. ₦600,000
C. ₦800,000
D. ₦1,000,000
Question 10
In a just-in-time (JIT) inventory system, what is the primary goal of the reorder point?
A. To minimize inventory costs
B. To maximize inventory turnover
C. To ensure that stockouts are minimized
D. To reduce lead times
Question 11
A company is considering the introduction of a new product. The product's demand is expected to be seasonal, with peak demand during the summer months. What type of inventory control system would be most appropriate for this situation?
A. Just-in-time inventory system
B. Economic order quantity (EOQ) system
C. Seasonal inventory system
D. Safety stock system
Question 12
A business is considering the purchase of an insurance policy to cover against loss due to theft. The policy has a premium of ₦80,000 per annum. The expected loss due to theft is ₦40,000 per annum. What is the expected value of perfect insurance for this business?
A. ₦40,000
B. ₦60,000
C. ₦80,000
D. ₦100,000
Question 13
A business is considering the purchase of an insurance policy to cover against loss due to fire. The policy has a premium of ₦100,000 per annum. The expected loss due to fire is ₦50,000 per annum. What is the expected value of perfect insurance for this business?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 14
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are received in a shipment, what is the new percentage of capacity?
A. 60%
B. 65%
C. 70%
D. 75%
Question 15
A life insurance policy has a premium of ₦50,000 per annum. The policy pays a benefit of ₦1,000,000 in the event of the policyholder's death. If the policyholder dies after 5 years, what is the total amount that the policyholder's family will receive?
A. ₦2,500,000
B. ₦2,750,000
C. ₦3,000,000
D. ₦3,250,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: