POST UTME FUTA 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's website is hacked, and sensitive customer information is stolen. Which of the following is a likely consequence of this breach?
A. The company's reputation is severely damaged
B. The company is liable for damages to affected customers
C. The company's website is shut down indefinitely
D. The company's employees are fired
Question 2
A company's Memorandum of Association (MOA) is a document that outlines the company's
A. Objectives and Goals
B. Share Capital and Ownership Structure
C. Business Operations and Management
D. All of the above
Question 3
A consumer has a budget of ₦100,000 and a preference for two goods, A and B. The prices of the goods are ₦20,000 and ₦30,000, respectively. If the consumer spends all their budget on good A, what is the maximum amount they can spend on good B?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 4
A warehouse has a capacity of 10,000 units. If 8,000 units are already stored, what is the remaining capacity?
A. 2,000 units
B. 4,000 units
C. 6,000 units
D. 8,000 units
Question 5
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is likely to be
A. inelastic
B. elastic
C. unit elastic
D. perfectly inelastic
Question 6
A firm's cost function is given by C = 2L + 3K, where C is the cost, L is the labor, and K is the capital. If the firm increases its labor by 20% and capital by 15%, what is the effect on the cost?
A. Cost increases by 10%
B. Cost increases by 12%
C. Cost increases by 15%
D. Cost increases by 18%
Question 7
A company is required to keep a register of its members under the Companies and Allied Matters Act (CAMA) 2020. What is the purpose of this register?
A. To record the company's financial transactions
B. To record the company's share capital
C. To record the names and addresses of the company's members
D. To record the company's business activities
Question 8
A company is considering outsourcing its manufacturing operations to a foreign country. Which of the following is a potential benefit of this decision?
A. Reduced labor costs
B. Increased market share
C. Improved product quality
D. Enhanced brand reputation
Question 9
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: interest rates, reserve requirements, and open market operations. However, the CBN has also been known to use a less conventional tool to control inflation. Which of the following is NOT a less conventional tool used by the CBN to control inflation?
A. Quantitative Easing
B. Forward Guidance
C. Price Controls
D. Fiscal Policy
Question 10
A bank offers a loan with an interest rate of 12% per annum compounded annually. If the principal amount is ₦10,000 and the loan is repaid after 3 years, what is the total amount paid by the borrower?
A. ₦12,727.08
B. ₦12,727.09
C. ₦12,727.10
D. ₦12,727.11
Question 11
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm increases its labor input from 4 to 9, and its capital input from 16 to 25, by how much does the quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A consumer protection law requires businesses to provide a 30-day cooling-off period for customers to return products. What is the purpose of this law?
A. To protect consumers from defective products
B. To allow consumers to return products that do not fit
C. To give consumers time to think before making a purchase
D. To prevent businesses from selling products that are not in stock
Question 13
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?
A. Obtaining a Tax Identification Number (TIN)
B. Obtaining a Business Name Registration Certificate
C. Obtaining a Certificate of Incorporation
D. Obtaining a Business Permit
Question 14
A sole trader's business is considered a separate legal entity from its owner's personal assets. However, if the business incurs a debt, the owner's personal assets can be used to settle the debt. What is the name of this legal concept?
A. Piercing the Corporate Veil
B. Limited Liability
C. Separate Legal Entity
D. Personal Liability
Question 15
A firm's profit function is given by π = R - C, where π is the profit, R is the revenue, and C is the cost. If the firm increases its revenue by 20% and cost by 15%, what is the effect on the profit?
A. Profit increases by 10%
B. Profit increases by 12%
C. Profit increases by 15%
D. Profit increases by 18%

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