POST UTME FUTO 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's break-even point (BEP) is the point at which its total revenue equals its total fixed costs. Which of the following is a factor that affects the BEP?
A. Selling price
B. Fixed costs
C. Variable costs
D. All of the above
Question 2
A company has a 10% dividend yield on its shares. If the current market price of the shares is ₦100, what is the annual dividend payment per share?
A. ₦10
B. ₦12
C. ₦15
D. ₦20
Question 3
A firm is considering two different production technologies to manufacture a new product. The first technology has a higher initial investment cost but lower operating costs. The second technology has a lower initial investment cost but higher operating costs. Which technology should the firm choose if it expects to produce the product for a long period?
A. First technology
B. Second technology
C. Either technology
D. Neither technology
Question 4
A firm's profit function is given by π = R - C, where π is profit, R is revenue, and C is cost. If the firm's revenue function is R = 1000Q - 2Q^2 and cost function is C = 100 + 2L + 3K, where Q is output, L is labor, and K is capital, and the firm increases output from 50 units to 75 units, labor from 50 units to 75 units, and capital from 50 units to 75 units, by how much will profit increase?
A. ₦2500
B. ₦5000
C. ₦7500
D. ₦10000
Question 5
A company's balance sheet shows that its total assets are ₦500 million and its total liabilities are ₦300 million. What is the company's equity?
A. ₦100 million
B. ₦200 million
C. ₦300 million
D. ₦400 million
Question 6
A sole trader's business is considered a separate legal entity from its owner. Which of the following statements is FALSE regarding this separation?
A. The sole trader's business is responsible for its own debts.
B. The sole trader's business is responsible for its owner's debts.
C. The sole trader's business is taxed separately from its owner.
D. The sole trader's business is not responsible for its owner's debts.
Question 7
A bank offers a credit card with a 20% annual interest rate and a 2% annual fee. The cardholder makes a payment of ₦10,000 every month. If the cardholder has a balance of ₦50,000, what is the total interest paid over a 12-month period?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 8
A firm's cost function is given by C = 100 + 2L + 3K, where C is cost, L is labor, and K is capital. If the firm increases labor from 50 units to 75 units, and capital from 50 units to 75 units, by how much will cost increase?
A. ₦250
B. ₦500
C. ₦750
D. ₦1000
Question 9
A marketing manager is developing a new product launch campaign. Which of the following is a key consideration when selecting the target audience?
A. Demographics and psychographics
B. Behavioral characteristics
C. Geographic location
D. Product usage patterns
Question 10
A company's financial statements show that its current ratio is 2.5 and its acid-test ratio is 1.2. What can be inferred about the company's liquidity position?
A. The company has a strong liquidity position
B. The company has a weak liquidity position
C. The company's liquidity position is uncertain
D. The company's liquidity position is not relevant
Question 11
A company is considering setting up a sole proprietorship business. What is the primary advantage of this business structure?
A. Easy to set up
B. Low start-up costs
C. Simple tax compliance
D. Unlimited liability
Question 12
A firm is considering issuing a bond with a face value of ₦100 million and a coupon rate of 8%. What is the bond's yield to maturity?
A. 8%
B. 9%
C. 10%
D. 11%
Question 13
A sole trader's business is expanding rapidly. Which of the following is a key consideration for the sole trader when deciding whether to incorporate?
A. Limited liability
B. Increased tax burden
C. Reduced management control
D. Improved access to capital
Question 14
A consumer has entered into a contract with a trader for the purchase of a defective product. The consumer wishes to claim damages for the loss suffered. Which of the following is a prerequisite for the consumer's claim?
A. The consumer must have provided written notice to the trader.
B. The consumer must have returned the defective product to the trader.
C. The consumer must have suffered a loss of at least ₦10,000.
D. The consumer must have complained to the trader within 30 days of purchase.
Question 15
A firm's cash flow statement is a financial statement that shows the inflows and outflows of cash and cash equivalents over a specific period. Which of the following is a type of cash flow?
A. Operating cash flow
B. Investing cash flow
C. Financing cash flow
D. All of the above

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