POST UTME IGBINEDION UNIVERSITY 2017 Commerce | Objective

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Question 1
A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦150 per kilometer, while the cost of transporting goods by rail is ₦120 per kilometer. If the company needs to transport 500 kilometers of goods, what is the total cost of transportation by road and rail respectively?
A. ₦75,000
B. ₦90,000
C. ₦120,000
D. ₦150,000
Question 2
A company's marketing strategy involves a 15% discount on all products for the first 50 customers. If the original price of each product is ₦600, what is the total revenue for the first 50 customers?
A. ₦24,000
B. ₦27,000
C. ₦30,000
D. ₦33,000
Question 3
A consumer purchases a product for ₦1000. The product has a warranty that covers any defects for a period of one year. What is the expected value of the warranty?
A. ₦500
B. ₦750
C. ₦1000
D. ₦1250
Question 4
A company has a foreign trade agreement with a country that has a currency exchange rate of 1:1 with the Nigerian naira. The company exports a product worth 1000. What is the value of the product in naira?
A. ₦1000
B. ₦2000
C. ₦5000
D. ₦10,000
Question 5
The concept of 'agency' in consumer protection law refers to the relationship between a consumer and a business. Which of the following best describes the role of an agent in this context?
A. A person who acts on behalf of a consumer to negotiate a contract
B. A person who represents a business in a transaction with a consumer
C. A person who provides information to consumers about a product or service
D. A person who is responsible for enforcing consumer protection laws
Question 6
In a market with perfect competition, the demand curve for a firm's product is downward sloping. What is the implication of this for the firm's marginal revenue (MR) curve?
A. The MR curve is upward sloping.
B. The MR curve is downward sloping.
C. The MR curve is horizontal.
D. The MR curve is vertical.
Question 7
A sole trader, Mr. A, has a business that generates an average profit of ₦50,000 per month. If he wants to expand his business and increase his profit by 20%, how much additional capital will he need to invest?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 8
A company's production function is given by Q = 200L^0.7K^0.3, where Q is the quantity produced, L is the labor, and K is the capital. If the company wants to increase its production by 15% while keeping labor constant at 150 units, what percentage increase in capital is required?
A. 5%
B. 10%
C. 15%
D. 20%
Question 9
A company's financial statements are audited annually by an independent auditor. The auditor's report is based on the financial statements prepared by the company's management. Which of the following is a limitation of the auditor's report?
A. The auditor's report may not reflect the company's true financial position.
B. The auditor's report may not be based on the company's financial statements.
C. The auditor's report may not be prepared by an independent auditor.
D. The auditor's report may not be based on the company's financial statements prepared by management.
Question 10
A sole trader's business is registered with the Corporate Affairs Commission (CAC). The sole trader has a business name of XYZ Limited. Which of the following is a requirement for the business name?
A. The business name must be unique and not similar to any other business name.
B. The business name must be registered with the CAC.
C. The business name must be approved by the CAC.
D. The business name must be in English language.
Question 11
A company specializes in producing a single product, which is a type of electronic component. The production process involves several stages, including design, prototyping, and manufacturing. The company uses a just-in-time (JIT) inventory system to manage its stock levels. What is the primary advantage of using a JIT system in this context?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 12
A consumer has been a victim of identity theft. Which of the following is the consumer's right under consumer protection law?
A. The right to a free credit report
B. The right to a security freeze
C. The right to compensation for damages
D. The right to sue the perpetrator
Question 13
A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦150 per kilometer, while the cost of transporting goods by rail is ₦120 per kilometer. If the company needs to transport 500 kilometers of goods, what is the total cost of transportation by road and rail respectively?
A. ₦75,000
B. ₦90,000
C. ₦120,000
D. ₦150,000
Question 14
A warehouse is a facility used for storing goods in a controlled environment. Which of the following is a characteristic of a warehouse?
A. It is a place of production
B. It is a place of storage
C. It is a place of transportation
D. It is a place of consumption
Question 15
A company has a warehouse with a capacity of 1000 units. The company receives an order for 800 units. What is the probability that the warehouse will be able to fulfill the order?
A. 0.8
B. 0.9
C. 0.95
D. 1.0

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