POST UTME GREENFIELD UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a sole trade business, what is the primary advantage of using a partnership agreement?
A. Increased financial resources
B. Improved decision-making
C. Enhanced reputation
D. Simplified tax obligations
Question 2
A firm has a production function Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to produce 100 units of output, how many units of labor and capital are required?
A. L = 25, K = 25
B. L = 50, K = 50
C. L = 100, K = 100
D. L = 200, K = 200
Question 3
A company's directors are personally liable for any debts incurred by the company if they have not been paid. What is the primary responsibility of the directors?
A. To manage the company's day-to-day operations.
B. To oversee the company's financial transactions.
C. To ensure that the company's debts are paid.
D. To appoint and remove directors.
Question 4
A consumer protection agency has the following complaint statistics for a company: 20 complaints about product quality, 15 complaints about customer service, and 10 complaints about pricing. What is the total number of complaints?
A. 45
B. 50
C. 55
D. 60
Question 5
A firm is considering the purchase of a new machine that will cost ₦1.5 million. The machine is expected to last for 5 years and will generate annual savings of ₦300,000. If the firm's cost of capital is 12% per annum, what is the net present value (NPV) of the investment?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 6
A sole trader's business is not required to register with the Corporate Affairs Commission (CAC) if its annual turnover is less than ₦5 million. Which of the following is a consequence of this requirement?
A. The sole trader is exempt from paying taxes.
B. The sole trader is not required to file annual returns.
C. The sole trader is not liable for any business debts.
D. The sole trader is not required to register for a tax identification number.
Question 7
A company is considering the introduction of a new product line. The product requires an initial investment of ₦4 million and has a projected annual profit of ₦2.5 million. If the company's cost of capital is 12% per annum, what is the internal rate of return (IRR) on the investment?
A. 18%
B. 20%
C. 22%
D. 25%
Question 8
The following diagram shows the demand and supply curves for a product. What is the equilibrium price and quantity?
A. ₦100, 50 units
B. ₦120, 60 units
C. ₦150, 70 units
D. ₦180, 80 units
Question 9
A company has a policy of paying its suppliers on time. This is an example of which of the following?
A. Just-in-time inventory management
B. Cash flow management
C. Accounts payable management
D. Accounts receivable management
Question 10
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: Open Market Operations (OMO), Reserve Requirements, and Moral Suasion. Which of the following is NOT a monetary policy tool used by the CBN?
A. Fiscal Policy
B. Monetary Policy
C. Supply-Side Policy
D. Demand-Side Policy
Question 11
A consumer purchases a product online and receives a defective product. The consumer is entitled to a refund or replacement. What is the primary purpose of the consumer protection law?
A. To protect the consumer from defective products.
B. To promote the sale of products online.
C. To provide a guarantee of the product's quality.
D. To ensure that consumers are aware of their rights.
Question 12
A company has a 10% dividend yield and a current stock price of ₦100. What is the expected dividend per share?
A. ₦10
B. ₦12
C. ₦15
D. ₦18
Question 13
A company's marketing strategy involves a 10% discount for the first 100 customers, a 15% discount for the next 200 customers, and a 20% discount for all subsequent customers. If the company sells 500 units, what is the total revenue?
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 14
A company is considering the introduction of a new product line. The product requires an initial investment of ₦5 million and has a projected annual profit of ₦2 million. If the company's cost of capital is 10% per annum, what is the internal rate of return (IRR) on the investment?
A. 15%
B. 12%
C. 10%
D. 8%
Question 15
A sole trader wants to expand their business by hiring employees. Which of the following is the most significant advantage of incorporating as a company?
A. Limited liability
B. Tax benefits
C. Increased funding options
D. Improved management structure

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