POST UTME LEAD CITY UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer protection agency is responsible for enforcing the _______ Act.
A. Consumer Protection
B. Competition and Consumer Protection
C. Federal Competition and Consumer Protection
D. National Consumer Protection
Question 2
A sole trader's business is not a separate legal entity from the owner. What is the main advantage of this?
A. Easy to set up and maintain
B. Flexibility in decision-making
C. Limited liability for the owner
D. No need for formal accounting records
Question 3
A consumer purchases a product online and pays for it using a credit card. The consumer is protected by which of the following laws?
A. Consumer Protection Act
B. Electronic Transactions Act
C. Banking and Other Financial Institutions Act
D. Insurance Act
Question 4
A consumer purchases a product with a price of ₦1,000 and a discount of 10%. What is the amount of the discount?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 5
A bank's financial statement shows a net income of ₦1.5 million. What is the primary purpose of this financial statement?
A. To show the bank's profitability
B. To demonstrate the bank's liquidity
C. To illustrate the bank's solvency
D. To display the bank's efficiency
Question 6
A sole trader's business is not separate from their personal finances because they do not have a
A. business bank account
B. business license
C. business registration
D. separate legal entity
Question 7
A company's financial statements are audited by an independent auditor to ensure _______.
A. Accuracy
B. Completeness
C. Reliability
D. Consistency
Question 8
A company is considering two investment options: Option A, which has a 10% chance of returning 100,000 and a 90% chance of returning 0, and Option B, which has a 20% chance of returning 80,000 and a 80% chance of returning 0. Which option has a higher expected return?
A. Option A
B. Option B
C. Option A and Option B are equally likely to return the highest amount
D. Neither option is likely to return a significant amount
Question 9
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. What is the primary reason for this upward-sloping supply curve?
A. Firm's increasing costs of production
B. Firm's decreasing costs of production
C. Firm's increasing revenue
D. Firm's decreasing revenue
Question 10
A warehouse's inventory turnover ratio is calculated by dividing the cost of goods sold by the
A. average inventory
B. total inventory
C. inventory turnover
D. days inventory outstanding
Question 11
A company's cost function is given by the equation C = 2L + 5K, where C is the total cost, L is the labor input, and K is the capital input. If the firm hires 10 units of labor and 20 units of capital, what is the total cost?
A. 50
B. 60
C. 70
D. 80
Question 12
A firm is considering two marketing strategies: Strategy A, which involves a 50,000 advertising campaign and is expected to increase sales by 10%, and Strategy B, which involves a 100,000 advertising campaign and is expected to increase sales by 20%. If the firm expects to sell the units at 50 each, which marketing strategy will result in the highest revenue?
A. Strategy A
B. Strategy B
C. Both marketing strategies will result in the same revenue
D. Neither marketing strategy will result in a significant revenue
Question 13
A bank's decision to increase interest rates on loans to control inflation is an example of a(n) _______ policy.
A. Monetary policy
B. Fiscal policy
C. Supply-side policy
D. Demand-side policy
Question 14
A company's profit function is given by the equation P = R - C, where P is the profit, R is the revenue, and C is the cost. If the firm's revenue is 100 and its cost is 50, what is the profit?
A. 20
B. 30
C. 40
D. 50
Question 15
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. What is the primary advantage of registering under CAMA?
A. Limited liability
B. Simplified registration process
C. Increased tax benefits
D. Enhanced consumer protection

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