POST UTME NILE UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's production process involves the conversion of raw materials into finished goods. What is the name of this process?
A. Manufacturing
B. Assembly
C. Packaging
D. Quality Control
Question 2
A consumer's budget constraint is given by the equation 2x + 3y = 100, where x and y are the quantities of two goods consumed. If the consumer's income is 100 units and the prices of the two goods are 2 and 3 units respectively, what is the consumer's optimal bundle?
A. (20, 10)
B. (15, 15)
C. (10, 20)
D. (5, 25)
Question 3
A sole trader's business is considered a separate legal entity from its owner. However, the owner is personally liable for the business's debts. What is the name of this type of business?
A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Cooperative
Question 4
A company's memorandum of association is a document that outlines the company's
A. objects
B. share capital
C. management structure
D. all of the above
Question 5
A company's cost of goods sold (COGS) is ₦500,000. If the company's selling price is ₦1,000,000 and the company sells 1,000 units, what is the company's gross profit?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 6
A company's marketing mix consists of four main elements: product, price, promotion, and place. Which of the following is a correct example of a product element?
A. A 30% discount on all products
B. A new product launch
C. A change in the company's logo
D. A new store location
Question 7
A business's financial statements include several key components, including the balance sheet, income statement, and cash flow statement. Which of the following is a correct example of a business's financial leverage?
A. The use of debt financing to increase a business's assets
B. The use of equity financing to increase a business's assets
C. The use of cash to increase a business's assets
D. The use of credit to increase a business's assets
Question 8
A company's articles of association state that the company must maintain a minimum cash reserve of ₦500,000. If the company's current cash reserve is ₦300,000, what is the minimum amount of additional funds the company must raise?
A. ₦100,000
B. ₦200,000
C. ₦500,000
D. ₦1,000,000
Question 9
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product will be?
A. a vertical line
B. a horizontal line
C. a downward-sloping line
D. an upward-sloping line
Question 10
A company is considering exporting its products to a foreign market. Which of the following factors would be most important to consider when making this decision?
A. Market size and growth rate
B. Competitor analysis
C. Trade agreements and regulations
D. Transportation costs
Question 11
A firm has a production function given by Q = 3L^0.7K^0.3. If the firm's output is 120 units and the wage rate is ₦60 per hour, what is the minimum amount of capital required to produce this output?
A. ₦1800
B. ₦2200
C. ₦2800
D. ₦3200
Question 12
A company's sole trader is considering the purchase of a new warehouse. The warehouse has a purchase price of ₦5,000,000 and an annual maintenance cost of ₦200,000. The company expects to use the warehouse for 5 years. What is the present value of the warehouse using the discount rate of 8%?
A. ₦3,419,419
B. ₦3,619,419
C. ₦3,819,419
D. ₦4,419,419
Question 13
A company has a market share of 30% in a competitive market. If the market demand is 10,000 units, what is the company's sales revenue?
A. ₦3,000,000
B. ₦3,500,000
C. ₦4,000,000
D. ₦4,500,000
Question 14
In a consumer protection context, what is the primary purpose of the Consumer Protection Act of 1999?
A. To regulate consumer credit
B. To protect consumers from unfair trade practices
C. To promote consumer education
D. To establish consumer rights
Question 15
A company is considering the purchase of a new machine that will cost ₦500,000. The machine is expected to last for 4 years and will generate an annual revenue of ₦150,000. The company expects to sell the machine at the end of its useful life for ₦300,000. What is the net present value of the machine using the discount rate of 8%?
A. ₦1,019,419
B. ₦1,119,419
C. ₦1,219,419
D. ₦1,319,419

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