POST UTME RHEMA UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers from unfair trade practices. Which of the following is NOT a provision of the Act?
A. Prohibition of unfair contract terms
B. Establishment of the Consumer Protection Council
C. Compensation for consumers who suffer losses due to unfair trade practices
D. Granting of immunity to manufacturers from liability for defective products
Question 2
The Consumer Protection Act of 1999 provides for the establishment of a Consumer Protection Council to promote and protect the rights of consumers. Which of the following is a function of the Consumer Protection Council?
A. To investigate complaints from consumers
B. To promote consumer education and awareness
C. To regulate the activities of businesses
D. To provide legal representation for consumers
Question 3
A foreign trade agreement between two countries requires that all imports be subject to a 10% tariff. What is the effect of this tariff on the importing country's economy?
A. The tariff increases the importing country's GDP.
B. The tariff decreases the importing country's GDP.
C. The tariff has no effect on the importing country's GDP.
D. The tariff increases the importing country's inflation rate.
Question 4
A warehouse has a storage capacity of 10,000 units. If 8,000 units are already stored, what percentage of the warehouse is occupied?
A. 20%
B. 30%
C. 40%
D. 50%
Question 5
A firm has the following production function: Q = 2L^0.5 + 3K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the optimal combination of labor and capital that maximizes the profit?
A. L = 4, K = 1
B. L = 1, K = 4
C. L = 2, K = 2
D. L = 1, K = 1
Question 6
A company uses a communication model to determine the most effective way to communicate with its customers. The communication costs are as follows: Email: ₦10 per unit, Phone: ₦20 per unit, Text Message: ₦30 per unit. If the company wants to communicate with 5,000 customers, what is the total communication cost?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 7
A firm specializes in producing only one product, which is a type of electronic component. What is the primary advantage of this specialization?
A. Increased production costs
B. Reduced product variety
C. Improved product quality
D. Enhanced marketing efforts
Question 8
A company is considering two different production processes for its new product. Process A has a fixed cost of ₦150,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦120,000 and a variable cost of ₦75 per unit. If the selling price of the product is ₦200 per unit, what is the minimum number of units that must be produced to make a profit using Process A?
A. 1000
B. 1200
C. 1500
D. 1800
Question 9
A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment in advertising, but the company expects a high return on investment (ROI) of 30%. Strategy B involves a lower initial investment in advertising, but the company expects a lower ROI of 15%. If the company has a budget of ₦1,000,000 for advertising, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective
Question 10
A firm exports goods to a foreign country. What is the primary responsibility of the firm in complying with foreign trade regulations?
A. To ensure compliance with local regulations
B. To verify the authenticity of the product
C. To check the product's compliance with industry standards
D. To inspect the product's packaging
Question 11
A company has a production process that involves two stages: Stage 1 and Stage 2. Stage 1 has a production capacity of 100 units per hour, and Stage 2 has a production capacity of 80 units per hour. If the company wants to produce a total of 1,000 units per hour, what is the maximum number of hours it will take to produce 10,000 units?
A. 10 hours
B. 12 hours
C. 15 hours
D. 20 hours
Question 12
A company's production function is given by Q = 2L^0.5 + 3K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the optimal combination of labor and capital that minimizes the cost of production?
A. L = 4, K = 1
B. L = 1, K = 4
C. L = 2, K = 2
D. L = 1, K = 1
Question 13
A company is considering two different production processes: Process A, which involves a fixed cost of ₦100,000, and a variable cost of ₦50 per unit, and Process B, which involves a fixed cost of ₦150,000, and a variable cost of ₦30 per unit. If the company wants to produce 100 units, what is the total cost of Process A?
A. ₦5,500,000
B. ₦5,000,000
C. ₦4,500,000
D. ₦4,000,000
Question 14
A company's memorandum of association provides for the issue of debentures to raise capital. What is the primary purpose of debentures?
A. To raise short-term capital
B. To raise long-term capital
C. To provide a source of loan capital
D. To provide a source of equity capital
Question 15
A sole trader has a business that generates a profit of ₦200,000 per year. The sole trader's personal income tax rate is 20%. What is the sole trader's personal income tax liability for the year?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦80,000

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