POST UTME REDEEMERS UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is registered under the name 'ABC Enterprises'. Which of the following is a correct statement about the business?
A. The business is a partnership
B. The business is a limited company
C. The business is a sole trader
D. The business is a cooperative society
Question 2
A company specializes in producing high-quality leather goods. It has a production capacity of 10,000 units per month. The company operates a just-in-time inventory system, which means that it produces and sells its products just in time to meet customer demand. If the company sells 8,000 units in a month, what is the value of its inventory turnover ratio?
A. 8
B. 10
C. 12
D. 15
Question 3
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm uses 100 units of labor and 400 units of capital, what is the value of Q?
A. 20
B. 40
C. 60
D. 80
Question 4
A consumer purchases a product online and receives a defective item. What is the consumer's right under the Consumer Protection Act?
A. To return the product for a full refund
B. To exchange the product for a similar item
C. To claim damages for the defective product
D. To cancel the purchase and receive a full refund
Question 5
A company's financial statements include the balance sheet, income statement, and
A. cash flow statement
B. statement of changes in equity
C. statement of cash flows
D. statement of retained earnings
Question 6
A company uses a communication system to manage its supply chain. The company has a team of 5 employees who need to communicate with each other to coordinate the logistics. The company uses a communication system that can support up to 10 users. What is the maximum number of users that the company can add to the system?
A. 5
B. 6
C. 7
D. 8
Question 7
A firm is considering two different production technologies: one that uses labor and capital as inputs, and another that uses only labor as an input. The production function for the first technology is given by the equation ( Q = 100L^0.5K^0.25 ), while the production function for the second technology is given by the equation ( Q = 50L^0.5 ). If the firm wants to produce 100 units of the commodity, and the wage rate is ₦100 per hour, while the rental rate for capital is ₦50 per hour, what is the minimum cost of production for each technology?
A. First technology: ₦10,000, Second technology: ₦5,000
B. First technology: ₦5,000, Second technology: ₦10,000
C. First technology: ₦12,500, Second technology: ₦6,250
D. First technology: ₦6,250, Second technology: ₦12,500
Question 8
A company uses a just-in-time inventory system to manage its inventory. The company receives an order for 5,000 units of goods. The company's supplier has a lead time of 3 days. What is the maximum number of units of goods that the company can order to meet the demand?
A. 4,000
B. 5,000
C. 6,000
D. 7,000
Question 9
A consumer has a budget constraint given by P1x + P2y = 100, where P1 and P2 are the prices of two goods, and x and y are the quantities consumed. If the consumer has a utility function given by U(x, y) = 2x + 3y, and the prices of the two goods are P1 = 20 and P2 = 30, what is the value of the consumer's optimal bundle?
A. (2, 2)
B. (3, 3)
C. (4, 4)
D. (5, 5)
Question 10
A company uses a transportation management system to manage its logistics. The company has a fleet of 10 trucks that can transport goods from a warehouse to a distribution center. The distance between the warehouse and the distribution center is 200 miles. What is the maximum number of trips that the company can make in a day?
A. 10
B. 20
C. 30
D. 40
Question 11
A firm has a cost function given by C(Q) = 2Q^2 + 100, where C(Q) is the total cost and Q is the quantity produced. If the firm produces 10 units of output, what is the value of its average cost?
A. 20
B. 30
C. 40
D. 50
Question 12
A company's financial statements show a high level of debt. Which of the following is a potential consequence of this?
A. Increased profitability
B. Improved credit rating
C. Reduced financial flexibility
D. Enhanced market position
Question 13
A company is considering investing in a new project. Which of the following is a key factor to consider when evaluating the project's potential return on investment?
A. Project duration
B. Project cost
C. Expected cash flows
D. Risk assessment
Question 14
A company has a sole trader business structure. What is the primary advantage of this structure?
A. Limited liability for the owner
B. Easy to set up and maintain
C. Flexibility in decision-making
D. No requirement for formal accounting records
Question 15
A business's introduction to commerce involves understanding its environment and stakeholders. What is the primary stakeholder group that a business must consider?
A. Employees and management
B. Customers and suppliers
C. Shareholders and investors
D. Government and regulatory bodies

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