POST UTME EKSU 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering the establishment of a sole trade business. What are the key characteristics of a sole trade business?
A. Limited liability, separate legal entity
B. Unlimited liability, single owner
C. Partnership, shared ownership
D. Company, multiple shareholders
Question 2
A consumer has the following indifference curves: IC1: 2x + 3y = 6, IC2: 2x + 3y = 12. If the consumer is initially at point A(2, 1), what is the point on IC2 that the consumer will choose?
A. (4, 2)
B. (6, 3)
C. (8, 4)
D. (10, 5)
Question 3
A sole trader is considering the purchase of a new piece of equipment for their business. The equipment costs ₦500,000 and is expected to last for 5 years. The sole trader expects to save ₦10,000 per month on utility bills due to the new equipment. What is the net present value (NPV) of the new equipment, assuming a discount rate of 10%?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 4
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
C. Sole Proprietorship
D. Cooperative Society
Question 5
A company is considering the implementation of a new marketing strategy. The company has a budget of ₦1,000,000 for the marketing campaign. The company expects to generate a return on investment (ROI) of 20% on the marketing campaign. What is the expected return on investment (ROI) in percentage terms?
A. 15%
B. 20%
C. 25%
D. 30%
Question 6
A firm is engaged in international trade and is considering the use of a letter of credit. What is the primary purpose of a letter of credit?
A. To provide a guarantee of payment
B. To facilitate the exchange of goods
C. To reduce the risk of non-payment
D. To increase the cost of trade
Question 7
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the price of labor is 10 per hour and the price of capital is 20 per hour, and if the firm wants to maximize its profit, what is the optimal value of L?
A. 10
B. 20
C. 30
D. 40
Question 8
In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing marginal opportunity cost. What is the marginal opportunity cost?
A. The cost of producing one additional unit of a good
B. The cost of producing one unit of a good
C. The cost of producing two units of a good
D. The cost of producing three units of a good
Question 9
A consumer has the following budget constraint: 2x + 3y = 12. If the consumer's indifference curve is given by IC: x + 2y = 6, what is the point on IC that the consumer will choose?
A. (2, 2)
B. (4, 3)
C. (6, 4)
D. (8, 5)
Question 10
A consumer protection law that prohibits unfair or deceptive acts or practices in the marketplace is known as?
A. Consumer Protection Act
B. Fair Trade Act
C. Truth-in-Advertising Act
D. Deceptive Business Practices Act
Question 11
A firm has the following probability distribution for the number of units it will sell in a month: P(X=0)=0.1, P(X=1)=0.3, P(X=2)=0.4, P(X=3)=0.2. What is the expected value of X?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 12
A transportation company wants to minimize its fuel consumption. Which of the following routes would be most fuel-efficient?
A. Route A
B. Route B
C. Route C
D. Route D
Question 13
A company has a sole trader business with a capital of ₦500,000. It has a profit of ₦200,000 in the first year and a loss of ₦150,000 in the second year. What is the company's capital at the end of the second year?
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000
Question 14
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue function is MR = 200 - 2Q, what is the optimal price?
A. 20
B. 30
C. 40
D. 50
Question 15
A life insurance policy has a premium of ₦5000 per annum. If the policyholder wants to pay the premium in 6 equal installments, what is the amount of each installment?
A. ₦833.33
B. ₦1000
C. ₦1250
D. ₦1666.67

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