POST UTME PAN-ATLANTIC UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?
A. Obtain a Tax Identification Number (TIN)
B. Register with the Corporate Affairs Commission (CAC)
C. Obtain a Business Name Certificate
D. Obtain a Trade License
Question 2
A manufacturing company specializes in producing a single product, such as cars or electronics. What is the primary benefit of this specialization?
A. Increased production costs
B. Reduced product variety
C. Improved product quality
D. Increased economies of scale
Question 3
A bank is considering lending money to a customer. What is the primary factor that the bank will consider when making this decision?
A. The customer's credit score
B. The customer's income
C. The customer's debt-to-equity ratio
D. The customer's credit history
Question 4
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a primary objective of advertising?
A. To inform customers about the company's products
B. To persuade customers to buy the company's products
C. To create a sense of urgency among customers
D. To provide a detailed description of the company's products
Question 5
A firm's supply function is given by P = 2Q + 10, where P is price and Q is quantity. If the firm wants to produce 5 units of output, then the price it will receive is
A. ₦15
B. ₦20
C. ₦25
D. ₦30
Question 6
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. If the market price is 10, and the firm's marginal revenue is 8, what is the firm's marginal cost?
A. 6
B. 8
C. 10
D. 12
Question 7
A company is considering investing in a foreign market. What is the primary risk associated with this investment?
A. Currency risk
B. Country risk
C. Transfer risk
D. Political risk
Question 8
A business's introduction to commerce involves understanding the fundamental principles of business operations, including production, marketing, and finance. What is the primary focus of this introduction?
A. Understanding business operations
B. Analyzing market trends
C. Developing business strategies
D. Managing business finances
Question 9
A firm has a production function Q = 2L + 3K. If the firm's labor and capital are 10 and 5 respectively, what is the firm's output?
A. 20
B. 25
C. 30
D. 35
Question 10
A sole trader's business is considered a separate legal entity from its owner. This is an example of which business unit?
A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Cooperative Society
Question 11
A company exports goods to a foreign country. Which of the following best describes the type of trade involved?
A. Import
B. Export
C. Domestic trade
D. International trade
Question 12
A company has a marketing campaign that includes a promotion of 'Buy One Get One Free'. What type of pricing strategy is this?
A. Penetration pricing
B. Skim pricing
C. Bundle pricing
D. Loss leader pricing
Question 13
A company is considering purchasing a new insurance policy. What is the primary benefit of this policy?
A. To reduce the risk of financial loss
B. To increase the company's revenue
C. To improve the company's credit rating
D. To reduce the company's expenses
Question 14
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is likely to be
A. inelastic
B. elastic
C. unit elastic
D. perfectly inelastic
Question 15
A company's financial statements show a net income of ₦1,000,000 and a total asset turnover ratio of 2 times. What is the company's return on equity (ROE)?
A. 10%
B. 12%
C. 15%
D. 18%

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