POST UTME IGBINEDION UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's financial statements are audited by an independent auditor. What is the primary purpose of this audit?
A. To verify the company's financial statements
B. To provide an opinion on the company's financial health
C. To identify areas for improvement in the company's financial management
D. To provide a guarantee that the company's financial statements are accurate
Question 2
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300, respectively. If the consumer's indifference curves are convex to the origin, what is the optimal bundle of goods that the consumer will choose?
A. A = 2, B = 3
B. A = 3, B = 2
C. A = 4, B = 1
D. A = 1, B = 4
Question 3
The diagram below represents a production function. If the firm is producing at point A, what is the opportunity cost of producing one more unit of output?
A. ₦100
B. ₦200
C. ₦500
D. ₦1000
Question 4
A business can be insured against risks such as
A. fire, theft, and liability
B. natural disasters, cyber attacks, and terrorism
C. business interruption, product recall, and intellectual property theft
D. all of the above
Question 5
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
C. Sole Trader
D. Limited Liability Partnership
Question 6
A company's break-even point is the point at which its
A. total revenue equals its fixed costs
B. total revenue equals its variable costs
C. total revenue equals its total costs
D. total revenue equals its contribution margin
Question 7
A company's financial statements are audited annually. What is the primary purpose of this audit?
A. To ensure compliance with tax laws
B. To verify the accuracy of financial statements
C. To identify areas for cost reduction
D. To provide a second opinion on management decisions
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the firm wants to produce 100 units of output, how many labor hours and capital units should it use?
A. L = 100, K = 100
B. L = 400, K = 400
C. L = 1600, K = 1600
D. L = 6400, K = 6400
Question 9
A sole trader's business is registered with the Corporate Affairs Commission (CAC) for a period of five years. The registration fee is ₦5,000. If the sole trader decides to renew the registration for another five years, what is the total amount paid to the CAC?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 10
A sole trader's business is considered a separate legal entity from its owner. Which of the following is a characteristic of a sole trader's business?
A. Unlimited liability
B. Separate legal entity
C. No partnership
D. No limited liability
Question 11
A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following is a characteristic of a bank's primary function?
A. To act as a financial intermediary between savers and borrowers
B. To provide loans to customers
C. To accept deposits from customers
D. To invest in securities
Question 12
A company has a fleet of 10 vehicles, each with a capacity of 5 tons. If the company operates for 20 days in a month, what is the total tonnage transported for the month?
A. 1,000 tons
B. 2,000 tons
C. 3,000 tons
D. 4,000 tons
Question 13
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. shift to the left
Question 14
A marketing manager wants to advertise a product on social media. The manager has a budget of ₦50,000 and wants to reach a minimum of 10,000 people. If the cost per impression is ₦5, how many impressions can the manager achieve?
A. 5,000 impressions
B. 10,000 impressions
C. 15,000 impressions
D. 20,000 impressions
Question 15
A company's financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). What is the primary purpose of GAAP?
A. To ensure compliance with tax laws
B. To provide a framework for financial reporting
C. To identify areas for cost reduction
D. To provide a second opinion on management decisions

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