POST UTME ESUT 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm specializes in producing only one product, which is a type of electronics. This is an example of
A. Division of Labor
B. Economies of Scale
C. Product Differentiation
D. Vertical Integration
Question 2
A sole trader is responsible for all the profits and losses of the business. Which of the following is a characteristic of a sole trader?
A. Limited liability
B. Unlimited liability
C. Separate legal entity
D. No partnership
Question 3
A consumer is considering buying a product that costs ₦10,000. The product has a warranty that covers any defects for a period of 2 years. However, the consumer is concerned about the environmental impact of the product. Which of the following is a relevant factor for the consumer to consider?
A. Price
B. Quality
C. Environmental Impact
D. Warranty
Question 4
A company is sued for violating the Consumer Protection Act. The company's defense is that the consumer failed to read the fine print on the contract. Which of the following is a valid defense?
A. The consumer's failure to read the fine print is a valid defense.
B. The company's failure to disclose the terms of the contract is a valid defense.
C. The consumer's failure to understand the terms of the contract is a valid defense.
D. The company's failure to provide a clear and concise contract is a valid defense.
Question 5
A consumer protection agency has identified a product with a defect rate of 5%. If the product is sold in a market of 100,000 units, how many units are expected to be defective?
A. 4,000
B. 5,000
C. 6,000
D. 7,000
Question 6
A company, XYZ Ltd., has a capital structure of ₦1 billion in equity and ₦2 billion in debt. If its cost of debt is 10% and its cost of equity is 15%, what is its weighted average cost of capital (WACC)?
A. 12%
B. 13%
C. 14%
D. 15%
Question 7
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 8
A firm's demand curve is given by Qd = 100 - 2P. If the price elasticity of demand is -2, what is the price at which the firm will sell 50 units?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 9
A company specializes in producing and selling a single product. The production process involves three stages: raw material procurement, manufacturing, and packaging. The company uses a just-in-time (JIT) inventory system to manage its inventory levels. Which of the following is a characteristic of the JIT system?
A. High inventory levels
B. Low inventory levels
C. High production costs
D. Low production costs
Question 10
A company's inventory is valued at ₦100,000. If the company sells 20% of the inventory, how much will it receive in cash?
A. ₦20,000
B. ₦80,000
C. ₦120,000
D. ₦140,000
Question 11
A company has a cash balance of ₦500,000 and a bank overdraft of ₦200,000. What is the company's net cash position?
A. ₦700,000
B. ₦600,000
C. ₦300,000
D. ₦400,000
Question 12
A company's marketing strategy involves a 20% discount on all products for the first 3 months. What is the total revenue for the first 3 months if the average monthly revenue is ₦1,000,000?
A. ₦2,400,000
B. ₦2,500,000
C. ₦2,600,000
D. ₦2,800,000
Question 13
A company is considering forming a partnership with another company. The partnership will be a general partnership, where both companies will share the profits and losses equally. However, one of the companies has a higher credit rating than the other. Which of the following is a potential risk of the partnership?
A. Increased Profits
B. Decreased Profits
C. Increased Risk
D. Decreased Risk
Question 14
A sole trader has a cash balance of ₦50,000 and a bank overdraft of ₦20,000. What is the sole trader's net cash position?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 15
A company is considering two different marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 5% decrease in advertising expenditure. If the current advertising expenditure is ₦100,000, what is the total advertising expenditure under Strategy A?
A. ₦110,000
B. ₦105,000
C. ₦100,000
D. ₦95,000

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