POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's articles of association may provide for the appointment of a managing director. What are the powers and duties of a managing director?
A. The managing director has the power to appoint and remove directors, and is responsible for the overall management of the company.
B. The managing director has the power to appoint and remove directors, but is not responsible for the overall management of the company.
C. The managing director has no powers or duties.
D. The managing director is responsible for the overall management of the company, but has no power to appoint or remove directors.
Question 2
A firm is considering the use of a total quality management (TQM) approach. Which of the following is a key principle of TQM?
A. Continuous improvement
B. Employee empowerment
C. Customer satisfaction
D. Reduced costs
Question 3
A firm is considering the use of a warehouse management system (WMS). Which of the following is a benefit of a WMS?
A. Improved inventory accuracy
B. Increased storage capacity
C. Enhanced supply chain visibility
D. Reduced labor costs
Question 4
A firm uses the weighted average cost of capital (WACC) to determine its cost of capital. What is the primary component of WACC?
A. Debt component
B. Equity component
C. Preferred stock component
D. Retained earnings component
Question 5
A company has a sole trader business structure. What is the primary responsibility of the sole trader?
A. To manage the business
B. To make financial decisions
C. To take on unlimited liability
D. To hire employees
Question 6
A consumer has a budget of ₦1000 and a preference for two goods, A and B, with prices of ₦200 and ₦300, respectively. If the consumer's indifference curves are convex to the origin, what is the maximum amount of good A that the consumer can purchase?
A. 2
B. 3
C. 4
D. 5
Question 7
A company is considering a new business venture that involves the use of a franchise model. Which of the following is a potential advantage of this model?
A. Reduced marketing costs
B. Improved brand recognition
C. Enhanced product quality
D. Increased customer loyalty
Question 8
A company is considering the use of a third-party logistics (3PL) provider. Which of the following is a benefit of 3PL?
A. Reduced transportation costs
B. Improved delivery times
C. Enhanced supply chain flexibility
D. Increased storage capacity
Question 9
A sole trader's business is considered a separate legal entity from its owner. Discuss this statement with reference to the concept of limited liability.
A. True, as a sole trader's business is not responsible for the owner's personal debts.
B. False, as a sole trader's business is responsible for the owner's personal debts.
C. Limited liability is not relevant to sole traders.
D. Sole traders have unlimited liability.
Question 10
A company's cost function is given by C = 100 + 2L + 3K, where C is the total cost, L is the number of labor hours, and K is the capital invested. If the company wants to reduce its total cost by 15% while keeping labor hours constant, what percentage decrease in capital investment is required?
A. 5%
B. 10%
C. 15%
D. 20%
Question 11
A consumer has purchased a product that has been damaged during transportation. The consumer is entitled to a refund or replacement under which of the following laws?
A. Sale of Goods Act
B. Consumer Protection Act
C. Trade Practices Act
D. Contract Act
Question 12
A consumer has a budget of ₦2000 and a preference for two goods, A and B, with prices of ₦400 and ₦600, respectively. If the consumer's indifference curves are convex to the origin, what is the maximum amount of good A that the consumer can purchase?
A. 3
B. 4
C. 5
D. 6
Question 13
A company's memorandum of association may provide for the issue of debentures. What are the characteristics of debentures?
A. Debentures are a type of loan stock that is secured by a charge on the company's assets.
B. Debentures are a type of loan stock that is not secured by a charge on the company's assets.
C. Debentures are a type of equity share that is not secured by a charge on the company's assets.
D. Debentures are a type of preference share that is secured by a charge on the company's assets.
Question 14
In a sole trade business, the owner's capital is represented by the accounting equation: Assets = Capital + Liabilities. If the owner's capital is ₦250,000 and the liabilities are ₦120,000, what is the value of assets?
A. ₦370,000
B. ₦250,000
C. ₦120,000
D. ₦350,000
Question 15
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Tax benefits

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