POST UTME LEAD CITY UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following balance sheet: Assets: ₦5,000,000 Liabilities: ₦2,000,000 Equity: ₦3,000,000 What is the company's debt-to-equity ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 2
The 'principle of subrogation' is relevant to
A. insurance contracts
B. sales of goods
C. services
D. employment contracts
Question 3
A consumer has the right to
A. withdraw from a contract within 7 days
B. claim damages for breach of contract
C. seek an injunction to prevent a breach
D. terminate a contract due to non-performance
Question 4
A consumer has the right to
A. withdraw from a contract within 7 days
B. claim damages for breach of contract
C. seek an injunction to prevent a breach
D. terminate a contract due to non-performance
Question 5
A company's insurance policy covers the following risks: fire, theft, and liability. Which of the following is a correct statement regarding the coverage provided by the insurance policy?
A. The insurance policy covers the company's assets against fire and theft, but not against liability.
B. The insurance policy covers the company's liability against claims made by third parties, but not against fire and theft.
C. The insurance policy covers the company's assets against fire and theft, and also provides liability coverage against claims made by third parties.
D. The insurance policy does not cover the company's assets against fire and theft, and also does not provide liability coverage against claims made by third parties.
Question 6
A company's foreign trade activities involve the following components: importation, exportation, and transportation. Which of the following is a correct statement regarding the role of transportation in a company's foreign trade activities?
A. Transportation is responsible for importing goods from foreign countries, by transporting them from the port of entry to the company's warehouse.
B. Transportation is responsible for exporting goods to foreign countries, by transporting them from the company's warehouse to the port of exit.
C. Transportation is responsible for moving goods within the country, by transporting them from the port of entry to the company's warehouse, and also from the company's warehouse to the port of exit.
D. Transportation is not a critical component of a company's foreign trade activities, as it is not directly related to importation, exportation, or other trade activities.
Question 7
The main disadvantage of a partnership's business is
A. limited liability
B. flexibility in decision-making
C. easier to set up
D. higher tax rates
Question 8
A firm has the following production function: Q = 2L^0.5K^0.5 Where Q is output, L is labor, and K is capital. If the firm wants to produce 100 units of output, how many units of labor should it hire?
A. 10
B. 20
C. 30
D. 40
Question 9
The main advantage of a partnership's business is
A. limited liability
B. flexibility in decision-making
C. easier to set up
D. lower tax rates
Question 10
A bank is considering a new loan product that offers a variable interest rate tied to the prime lending rate. The bank's risk management team is concerned about the potential risks associated with this product, including the risk of interest rate volatility and the potential for borrowers to default on their loans. Which of the following is the most appropriate way for the bank to manage these risks?
A. Hedging the interest rate risk using derivatives
B. Increasing the loan-to-value ratio to reduce the risk of default
C. Requiring borrowers to make regular interest-only payments
D. Limiting the loan amount to reduce the risk of default
Question 11
A consumer is considering purchasing a new smartphone. The consumer has a budget of ₦50,000 and is willing to spend up to ₦30,000 on the smartphone. What is the consumer's budget constraint?
A. The consumer's budget constraint is a horizontal line at ₦30,000.
B. The consumer's budget constraint is a vertical line at ₦50,000.
C. The consumer's budget constraint is a downward-sloping line.
D. The consumer's budget constraint is a horizontal line at ₦50,000.
Question 12
A warehouse manager uses a first-in-first-out (FIFO) inventory management system. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved inventory turnover
C. Enhanced customer service
D. Increased inventory accuracy
Question 13
A company is considering a new supply chain management strategy that involves outsourcing its logistics operations to a third-party provider. The company is concerned about the potential risks associated with this strategy, including the risk of supply chain disruptions and the potential for the provider to compromise the company's intellectual property. Which of the following is the most appropriate way for the company to mitigate these risks?
A. Conducting a thorough risk assessment of the provider
B. Requiring the provider to implement robust security measures
C. Limiting the scope of the outsourcing agreement to specific logistics operations
D. Negotiating a contract that includes a termination clause
Question 14
A company's liability for a product defect is governed by the principles of
A. strict liability
B. negligence
C. breach of contract
D. unfair trade practices
Question 15
The limited liability company's business is a
A. sole proprietorship
B. partnership
C. limited liability company
D. cooperative society

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