POST UTME MOUNTAIN TOP UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader is sued by a customer for breach of contract. The sole trader claims that the contract was not enforceable because it was not in writing. However, the court rules that the contract is enforceable. Which of the following is a valid reason for the court's decision?
A. The contract was made in a foreign country.
B. The contract was made between two parties who are not in the same country.
C. The contract was made between two parties who are not in the same state.
D. The contract was made between two parties who are not in the same city.
Question 2
A consumer has a budget of ₦500 to spend on two goods, X and Y. The prices of X and Y are ₦2 and ₦3, respectively. If the consumer's indifference curves are given by U = 2X + 3Y and U = 4X + 5Y, which of the following combinations of X and Y will the consumer choose?
A. (X = 100, Y = 150)
B. (X = 150, Y = 100)
C. (X = 200, Y = 50)
D. (X = 250, Y = 25)
Question 3
A consumer has a budget of ₦3000 to spend on two goods, X and Y. The prices of X and Y are ₦15 and ₦10, respectively. If the consumer's indifference curves are given by U = 2X + 3Y and U = 4X + 5Y, which of the following combinations of X and Y will the consumer choose?
A. (X = 300, Y = 600)
B. (X = 400, Y = 500)
C. (X = 500, Y = 400)
D. (X = 600, Y = 300)
Question 4
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 invested. If the firm wants to produce 100 units of output, how many labor hours and capital invested are required?
A. L = 100, K = 100
B. L = 100, K = 200
C. L = 200, K = 100
D. L = 200, K = 200
Question 5
A company's articles of association can be amended by a
A. Simple Majority
B. Two-Thirds Majority
C. Special Resolution
D. Ordinary Resolution
Question 6
A consumer protection agency received a complaint from a customer who was charged an interest rate of 24% per annum on a loan of ₦200,000. If the loan was repaid in 2 years, what was the total interest paid by the customer?
A. ₦48,000
B. ₦50,000
C. ₦52,000
D. ₦54,000
Question 7
A production process that involves breaking down a raw material into smaller components is
A. Manufacturing
B. Assembly
C. Disassembly
D. Decomposition
Question 8
A consumer has a budget of ₦2000 to spend on two goods, X and Y. The prices of X and Y are ₦10 and ₦5, respectively. If the consumer's indifference curves are given by U = 2X + 3Y and U = 4X + 5Y, which of the following combinations of X and Y will the consumer choose?
A. (X = 200, Y = 400)
B. (X = 300, Y = 300)
C. (X = 400, Y = 200)
D. (X = 500, Y = 100)
Question 9
In a monopolistically competitive market, a firm's demand curve is downward sloping due to the presence of many close substitutes. However, the firm still experiences a downward-sloping demand curve because of the following reason:
A. The firm's product is a homogeneous good.
B. The firm's product is a differentiated good.
C. The firm's product is a complementary good.
D. The firm's product is a substitute good.
Question 10
A company is sued for violating the Companies and Allied Matters Act. The company claims that it did not intentionally violate the Act. However, the court rules that the company is liable for damages. Which of the following is a valid reason for the court's decision?
A. The company failed to file its annual returns.
B. The company failed to hold an annual general meeting.
C. The company failed to appoint a company secretary.
D. The company failed to register its memorandum of association.
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 to 121 units and its capital input from 100 to 121 units, by how many percentage points will the quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A firm's cost function is given by C(Q) = 2Q^2 + 3Q + 1, where C(Q) is the total cost and Q is the quantity produced. If the firm produces 15 units, what is the total cost?
A. ₦401
B. ₦501
C. ₦601
D. ₦701
Question 13
A firm is considering two different production processes for producing a certain product. Process A requires an initial investment of ₦100,000 and has a fixed cost of ₦50,000 per unit produced. Process B requires an initial investment of ₦150,000 and has a fixed cost of ₦30,000 per unit produced. If the firm produces 1,000 units of the product, which process will result in lower total cost?
A. Process A
B. Process B
C. Both processes will result in the same total cost
D. Neither process will result in lower total cost
Question 14
A bank is considering offering a new type of loan to its customers. The loan will have a fixed interest rate of 12% per annum and will be repayable in equal installments over a period of 5 years. If the customer borrows ₦500,000, what will be the monthly installment?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 15
A company is considering launching a new product line. The marketing manager has estimated that the product will generate a profit of ₦500,000 in the first year, ₦600,000 in the second year, and ₦700,000 in the third year. If the company's cost of capital is 10% per annum, calculate the present value of the expected cash flows using the formula for present value of an annuity.
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000

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