POST UTME MOUNTAIN TOP UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering the introduction of a new product line. Which of the following is a key consideration for the company?
A. Market demand for the product
B. Availability of raw materials
C. Potential competition from existing products
D. Impact on the company's financial statements
Question 2
A warehouse manager is responsible for maintaining a stock level of 500 units. The current stock level is 300 units. If 20 units are received daily, and 15 units are sold daily, what is the expected stock level after 10 days?
A. 350
B. 450
C. 550
D. 650
Question 3
A _______ is a type of business organization that is owned and controlled by its members
A. partnership
B. corporation
C. cooperative
D. sole proprietorship
Question 4
A company has a 10% dividend yield on its shares. If the current market price of the shares is ₦100, what is the annual dividend payment per share?
A. ₦10
B. ₦12
C. ₦15
D. ₦20
Question 5
A company is considering the use of a production process that involves the use of a new technology. Which of the following is a key consideration for the company?
A. The cost of implementing the new technology
B. The potential impact on the environment
C. The potential impact on the company's employees
D. The potential impact on the company's financial statements
Question 6
The _______ of a firm refers to the ability of the firm to adjust its production levels in response to changes in demand
A. elasticity of demand
B. elasticity of supply
C. marginal cost
D. marginal revenue
Question 7
A consumer protection agency is investigating a complaint about a company's advertising practices. The company claims that its advertisements are truthful and not misleading. However, the agency has evidence that the company's advertisements are exaggerating the benefits of its product. Which of the following consumer protection laws would be most relevant in this situation?
A. Federal Trade Commission Act
B. Consumer Product Safety Act
C. Truth in Lending Act
D. Fair Credit Reporting Act
Question 8
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
B. Unlimited liability
C. Flexibility in decision-making
D. No need for formal accounting records
Question 9
A company exports 80% of its production to foreign countries. If the company's total production is 1000 units, how many units are exported?
A. 800
B. 900
C. 1000
D. 1200
Question 10
A company's inventory management system uses the Economic Order Quantity (EOQ) model to determine the optimal order quantity. The EOQ model is given by the formula: (Q = sqrt{ rac{2DS}{h}}), where Q is the optimal order quantity, D is the demand rate, S is the ordering cost, and h is the holding cost. If the demand rate is 100 units per month, the ordering cost is ₦1200 per order, and the holding cost is ₦10 per unit per month, what is the optimal order quantity?
A. 200 units
B. 250 units
C. 300 units
D. 350 units
Question 11
A consumer protection agency receives a complaint from a customer who purchased a product online. The customer alleges that the product was not as described and was defective. The agency must determine whether the seller breached the contract of sale. Which of the following is a key consideration in determining whether the seller breached the contract?
A. The seller's intention to deceive the customer
B. The customer's failure to read the product description
C. The product's failure to meet the seller's warranty
D. The customer's failure to return the product
Question 12
A sole trader's business is considered a separate legal entity from its owner. What is the primary advantage of this separation?
A. Limited liability
B. Separate taxation
C. Easier business closure
D. Increased business flexibility
Question 13
A company has a 20% premium on its insurance policy. If the annual premium is ₦10,000, what is the actual cost of the insurance policy?
A. ₦8,000
B. ₦9,000
C. ₦10,000
D. ₦12,000
Question 14
A company's production process involves the following steps: raw material procurement, manufacturing, quality control, and packaging. Which step is most likely to be outsourced?
A. Raw material procurement
B. Manufacturing
C. Quality control
D. Packaging
Question 15
A consumer purchases a product from a retailer, but the product is defective. Which of the following is a consumer's right under the Consumer Protection Act?
A. To return the product for a full refund
B. To claim damages for any losses incurred
C. To require the retailer to replace the product
D. To cancel the contract and receive a full refund

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