POST UTME IMS U 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer protection law requires that all goods sold in a market must be accompanied by a warranty. Which of the following is a type of warranty?
A. Express warranty
B. Implied warranty
C. Statutory warranty
D. Consequential warranty
Question 2
A warehouse manager wants to store 500 boxes of goods in a warehouse with a capacity of 2000 boxes. The goods are packed in boxes of 10 kg each. If the warehouse has a maximum weight capacity of 1000 kg, how many boxes can be stored?
A. 50
B. 75
C. 100
D. 125
Question 3
A risk management strategy that involves transferring risk to another party is known as?
A. Diversification
B. Hedging
C. Insurance
D. Speculation
Question 4
A company's financial statements are audited annually by an independent auditor. This is an example of
A. internal control
B. external audit
C. financial reporting
D. accounting standards
Question 5
A company's cost function is given by C(x) = 2x^2 + 5x, where x is the number of units produced. If the company produces 10 units, what is the total cost?
A. 50
B. 60
C. 70
D. 80
Question 6
A bank wants to offer a loan to a customer who has a credit score of 600. The bank's lending policy requires a minimum credit score of 700. What is the best course of action?
A. Approve the loan
B. Deny the loan
C. Request additional information from the customer
D. Offer a higher interest rate
Question 7
A consumer's indifference curve is given by U = 2X1 + 3X2, where U is the utility and X1 and X2 are the quantities consumed. If the consumer's income is ₦1000, and the prices of the two goods are ₦10 and ₦20 respectively, how much of good 2 should the consumer buy if they want to maximize their utility?
A. 5
B. 10
C. 15
D. 20
Question 8
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
C. Sole Proprietorship
D. Cooperative Society
Question 9
A firm uses an insurance policy to mitigate its risks. The policy covers losses due to natural disasters. If the firm experiences a loss due to a natural disaster, what is the expected impact on its financial statements?
A. Financial statements will show a loss
B. Financial statements will show a gain
C. Financial statements will remain unchanged
D. Financial statements will fluctuate
Question 10
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 units to 121 units and its capital input from 100 units to 121 units, what is the percentage change in the quantity produced?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 units to 121 units and its capital input from 100 units to 121 units, what is the percentage change in the quantity produced?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A firm's revenue function is given by R(x) = 2x^2 + 10x, where x is the number of units sold. If the firm sells 5 units, what is the marginal revenue?
A. 20
B. 30
C. 40
D. 50
Question 13
A company's articles of association is a document that outlines the?
A. Objectives of the company
B. Rights and duties of shareholders
C. Rights and duties of directors
D. Rights and duties of employees
Question 14
A firm uses a warehouse management system to track its inventory levels. The system uses a first-in-first-out (FIFO) inventory method. If the firm receives a new shipment of goods, what is the expected impact on the inventory levels of the existing goods?
A. Inventory levels will decrease
B. Inventory levels will increase
C. Inventory levels will remain the same
D. Inventory levels will fluctuate
Question 15
A company operates as a sole proprietorship. The owner has unlimited personal liability for the business's debts. If the company incurs a debt, what is the expected impact on the owner's personal assets?
A. Personal assets will increase
B. Personal assets will decrease
C. Personal assets will remain unchanged
D. Personal assets will fluctuate

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