POST UTME OAU 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer purchases a product from a retailer but discovers that it is defective. What is the consumer's right under the Consumer Protection Act?
A. The consumer has the right to a full refund.
B. The consumer has the right to a replacement product.
C. The consumer has the right to compensation for damages.
D. The consumer has the right to sue the retailer for breach of contract.
Question 2
A company's production function is given by the equation Q = 2L^0.5K^0.5. If the company wants to increase its output by 20%, what percentage increase in labor and capital is required?
A. 10% increase in labor and 10% increase in capital.
B. 20% increase in labor and 20% increase in capital.
C. 15% increase in labor and 15% increase in capital.
D. 25% increase in labor and 25% increase in capital.
Question 3
A company is involved in international trade and has a contract with a foreign supplier. What is the implication of this on the company?
A. The company is not required to comply with local laws and regulations.
B. The company is not required to pay taxes on international transactions.
C. The company is liable to penalties for non-compliance with international trade laws.
D. The company is not required to have a business name.
Question 4
A company is registered with the Corporate Affairs Commission (CAC) but has not filed its annual returns. What is the implication of this on the company?
A. The company is not required to pay taxes.
B. The company is not a legal entity and cannot sue or be sued.
C. The company is liable to a fine of ₦100,000.
D. The company is not required to have a business name.
Question 5
A company's stock is priced at ₦50 per share. If the number of shares outstanding increases by 15%, what is the new market capitalization?
A. ₦5,750,000
B. ₦5,250,000
C. ₦5,000,000
D. ₦4,750,000
Question 6
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦10 per unit, and the price of capital is ₦20 per unit, what is the minimum cost of production?
A. ₦160
B. ₦320
C. ₦640
D. ₦1280
Question 9
The concept of 'Gresham's Law' in economics states that bad money drives out good money. What is the primary reason for this phenomenon?
A. Inflation
B. Deflation
C. Monetary policy
D. Supply and demand
Question 10
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the implication of this on the business?
A. The business is not required to file annual returns.
B. The business is not required to pay taxes.
C. The business is not a legal entity and cannot sue or be sued.
D. The business is not required to have a business name.
Question 11
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor constant at 100 units, how much capital should it invest?
A. ( 100 sqrt{5} )
B. ( 50 sqrt{5} )
C. ( 200 sqrt{5} )
D. ( 500 sqrt{5} )
Question 12
A firm exports 80% of its production to foreign countries. If the firm's total production is 10,000 units, how many units are exported?
A. 8,000
B. 9,000
C. 10,000
D. 11,000
Question 13
A company's financial statements show a net income of ₦1,000,000 and a total equity of ₦2,000,000. What is the company's return on equity (ROE)?
A. 50%
B. 60%
C. 70%
D. 80%
Question 14
A country's trade balance is given by the equation TB = X - M, where X is the value of exports and M is the value of imports. If the country's exports are 100 billion and its imports are 120 billion, what is the trade balance?
A. -20 billion
B. -10 billion
C. 10 billion
D. 20 billion
Question 15
A firm's marketing budget is ₦100000. The firm wants to allocate the budget to advertising and promotion. If the firm allocates 20% of the budget to advertising, what is the amount allocated to promotion?
A. ₦20000
B. ₦40000
C. ₦60000
D. ₦80000

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