POST UTME PAN-ATLANTIC UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering setting up a new bank account to manage its cash flows. The bank account will require an initial deposit of ₦100 million and will have an annual maintenance fee of ₦20,000. The firm's current cash balance is ₦500 million, and the bank account will earn an interest rate of 8% per annum. What is the expected annual interest income from the bank account?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 2
A sole trader, Mr. B, has a business that generates revenue of ₦500,000 per annum. His expenses include rent of ₦100,000, salaries of ₦150,000, and other expenses of ₦50,000. What is Mr. B's net profit for the year?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 3
A company is considering two different communication options for its customers. Which option is more likely to improve customer satisfaction?
A. Option A: Email communication
B. Option B: Phone communication
C. Option C: Social media communication
D. Option D: In-person communication
Question 4
A life insurance policy is a type of non-life insurance policy.
A. True
B. False
C. It depends on the type of policy
D. It is a type of life insurance policy
Question 5
A firm has a cost structure consisting of fixed costs of ₦500,000 and variable costs of ₦0.50 per unit. If the firm produces 10,000 units, what is its total cost?
A. ₦6,500,000
B. ₦6,750,000
C. ₦7,000,000
D. ₦7,250,000
Question 6
A company has a revenue function given by R = 100Q - 2Q^2, where R is the revenue and Q is the quantity sold. If the company wants to maximize the revenue, and the quantity sold is fixed at 10, what is the maximum revenue?
A. ₦800
B. ₦900
C. ₦1000
D. ₦1100
Question 7
A company is sued for violating the Consumer Protection Act. The company's defense is that the product was not defective at the time of sale. However, the plaintiff presents evidence that the product was defective and caused harm to the consumer. Which of the following is the most likely outcome?
A. The court will rule in favor of the company, as the product was not defective at the time of sale.
B. The court will rule in favor of the plaintiff, as the product was defective and caused harm to the consumer.
C. The case will be dismissed, as the Consumer Protection Act does not apply to this situation.
D. The court will order the company to pay damages to the consumer, but the company will not be held liable for any further claims.
Question 8
A company is considering two different marketing strategies for its new product. Which strategy is more likely to increase brand awareness?
A. Strategy A: Focus on social media advertising
B. Strategy B: Focus on influencer marketing
C. Strategy C: Focus on content marketing
D. Strategy D: Focus on event marketing
Question 9
In the context of consumer protection, what is the primary purpose of the Consumer Protection Act of 2004?
A. To regulate consumer rights and responsibilities
B. To promote fair competition among businesses
C. To protect the environment from consumer waste
D. To regulate consumer finance and credit
Question 10
A company is considering outsourcing its logistics operations to a third-party provider. The company's current logistics costs are ₦500 million per annum, and the outsourcing provider has quoted a price of ₦450 million per annum. However, the company will also incur additional costs of ₦50 million per annum for monitoring and controlling the outsourced operations. What is the net benefit of outsourcing the logistics operations?
A. ₦50 million
B. ₦100 million
C. ₦150 million
D. ₦200 million
Question 11
A firm is considering two different production technologies, A and B. Technology A has a fixed cost of ₦1000 and a variable cost of ₦200 per unit, while technology B has a fixed cost of ₦500 and a variable cost of ₦300 per unit. If the firm produces 10 units of output, what is the total cost of production for each technology?
A. Technology A: ₦4000, Technology B: ₦3500
B. Technology A: ₦3500, Technology B: ₦4000
C. Technology A: ₦4500, Technology B: ₦5500
D. Technology A: ₦5500, Technology B: ₦4500
Question 12
A company has a production capacity of 100 units per day. However, due to a shortage of raw materials, production is reduced to 80 units per day. What is the opportunity cost of producing 80 units per day instead of 100 units per day?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 13
A sole trader's business is considered a separate legal entity from the owner's personal assets. However, this separation is not absolute. What is the name of the legal doctrine that allows a court to pierce the veil of incorporation and hold the owner personally liable for business debts?
A. Piercing the Veil Doctrine
B. Separate Legal Entity Doctrine
C. Limited Liability Doctrine
D. Corporate Veil Doctrine
Question 14
A bank is considering two different investment options for its customers. Which option is more likely to provide a higher return on investment?
A. Option A: High-risk stocks
B. Option B: Low-risk bonds
C. Option C: Real estate investment
D. Option D: Mutual fund
Question 15
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee earns ₦1,200,000 per year, how much will they receive as a bonus?
A. ₦120,000
B. ₦125,000
C. ₦130,000
D. ₦135,000

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