POST UTME PAN-ATLANTIC UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the weighted average method to calculate its cost of goods sold. If the company has the following data: Cost of Goods Sold (COGS) = ₦150,000, Sales = ₦300,000, and the total number of units sold is 1,000, what is the cost per unit?
A. ₦150
B. ₦160
C. ₦170
D. ₦180
Question 2
A company has a production capacity of 10,000 units per day. If the company operates for 20 days, what is the total production?
A. 200,000 units
B. 250,000 units
C. 300,000 units
D. 400,000 units
Question 3
The Nigerian Communications Commission (NCC) regulates the telecommunications industry in Nigeria. Which of the following is a function of the NCC?
A. Setting standards for telecommunications equipment
B. Issuing licenses to telecommunications operators
C. Regulating the prices of telecommunications services
D. Providing telecommunications services to consumers
Question 4
A company has a market share of 30% in the industry. If the industry grows by 10% per annum, what is the expected growth rate of the company?
A. 6%
B. 8%
C. 10%
D. 12%
Question 5
A firm has a production function 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. If the firm's budget constraint is given by 5L + 10K = 100, and the price of the good is 5, what is the firm's optimal level of production?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 6
A company has two warehouses, A and B, with capacities of 1000 and 500 units, respectively. Warehouse A has a storage cost of 2 per unit, while Warehouse B has a storage cost of 3 per unit. If the company has 1500 units of inventory, how many units should it store in Warehouse A and how many in Warehouse B to minimize its total storage cost?
A. 1000 units in A, 500 units in B
B. 800 units in A, 700 units in B
C. 600 units in A, 900 units in B
D. 400 units in A, 1100 units in B
Question 7
A firm's marketing mix involves a combination of four elements: product, price, promotion, and place. Which of the following is NOT a characteristic of a product?
A. It is tailored to the target market
B. It is consistent with the company's overall business strategy
C. It is a physical good
D. It is a service
Question 8
In a sole trader business, what is the primary advantage of adopting a sole proprietorship structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Flexibility in decision-making
Question 9
A firm's supply chain management involves the coordination of activities from raw material sourcing to end-product delivery. Which of the following is a key benefit of just-in-time (JIT) inventory management?
A. Reduced inventory costs
B. Improved product quality
C. Increased supply chain flexibility
D. Enhanced customer satisfaction
Question 10
A company uses the Pareto analysis to identify the most critical factors affecting its production process. If the company has the following data: Factor A = 30%, Factor B = 25%, Factor C = 20%, and Factor D = 15%, what is the total percentage of the factors that are critical to the production process?
A. 60%
B. 70%
C. 80%
D. 90%
Question 11
A consumer protection agency has the power to investigate and prosecute businesses that engage in unfair trade practices. Which of the following is a correct example of an unfair trade practice?
A. A business that sells a product at a price lower than its cost.
B. A business that sells a product with a false or misleading label.
C. A business that refuses to honor a warranty.
D. A business that engages in price-fixing.
Question 12
A company is considering the introduction of a new product line. The product line is expected to generate ₦5 million in revenue and ₣0 million in costs. What is the expected profit?
A. ₢5 million
B. ₣0 million
C. ₣5 million
D. ₤0 million
Question 13
A company's financial statements provide information about its financial position and performance. Which of the following financial ratios is NOT a liquidity ratio?
A. Current Ratio
B. Quick Ratio
C. Debt-to-Equity Ratio
D. Return on Equity
Question 14
A consumer protection agency in Nigeria is responsible for enforcing consumer rights. Which of the following is a right of a consumer under the Consumer Protection Act?
A. The right to return a defective product
B. The right to a refund for a product that is not as described
C. The right to compensation for damages caused by a product
D. The right to sue a manufacturer for a product defect
Question 15
A sole trader has a business income of ₦500,000 and a business expenditure of ₦300,000. What is the profit of the business?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000

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