POST UTME RHEMA UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's insurance policy has a deductible of ₦50,000. If the company incurs a loss of ₦200,000, what is the amount the insurance company will pay?
A. ₦150,000
B. ₦100,000
C. ₦50,000
D. ₦0
Question 2
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are 16 and 25 respectively, what is the output?
A. 32
B. 40
C. 48
D. 64
Question 3
In a sole proprietorship, the owner's personal assets are
A. liable for business debts
B. exempt from business taxes
C. entitled to business profits
D. responsible for business liabilities
Question 4
A sole trader's business is not required to
A. register with the Corporate Affairs Commission
B. file annual returns with the Corporate Affairs Commission
C. submit audited accounts to the Corporate Affairs Commission
D. pay taxes on business profits
Question 5
A company's demand function is given by Q = 100 - 2P. If the company's price is increased by 20%, what is the expected change in quantity demanded?
A. 10% decrease
B. 20% decrease
C. 30% decrease
D. 40% decrease
Question 6
A company is considering the introduction of a new product. The product has a high fixed cost of production, but a low variable cost. The company is considering two different pricing strategies: a high price and a low price. Which of the following best describes the effect of the high price strategy on the company's costs?
A. The high price strategy will increase the company's costs.
B. The high price strategy will decrease the company's costs.
C. The high price strategy will have no effect on the company's costs.
D. The high price strategy will increase the company's costs, but will also increase the company's revenue.
Question 7
A firm's warehouse is used to store finished goods before they are shipped to customers. What is the name of the inventory management technique that involves counting the number of items in the warehouse at regular intervals?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. Inventory Valuation
D. Cycle Counting
Question 8
The concept of production specialization refers to the
A. division of labor among workers
B. division of tasks among departments
C. division of tasks among countries
D. division of tasks among industries
Question 9
A firm specializes in producing only one product. This specialization leads to economies of scale in production. However, it also means that the firm is vulnerable to fluctuations in demand for that product. What is the name of the economic concept that describes this vulnerability?
A. Risk
B. Uncertainty
C. Diversification
D. Concentration
Question 10
A company's financial statement shows a net income of ₦500,000. If the company's total assets are ₦2,000,000 and its total liabilities are ₦1,000,000, what is the company's return on equity?
A. 25%
B. 50%
C. 75%
D. 100%
Question 11
A firm's transportation costs are a significant expense in its supply chain. What is the name of the transportation mode that involves the use of ships to transport goods?
A. Rail
B. Road
C. Air
D. Marine
Question 12
A bank's reserve requirement is 10%. If the bank has a deposit of ₦1,000,000, how much must it keep in reserve?
A. ₦100,000
B. ₦50,000
C. ₦0
D. ₦500,000
Question 13
A company's stock is currently trading at ₦50 per share. If the company declares a 20% dividend, what is the new stock price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 14
A consumer protection agency has the power to investigate and prosecute companies that engage in unfair business practices. Which of the following is an example of an unfair business practice?
A. False advertising
B. Price-fixing
C. Bribery
D. All of the above
Question 15
A company's cash flow statement shows a net increase in cash of ₦1,500,000. If the company's beginning cash balance was ₦2,000,000, what is the ending cash balance?
A. ₦3,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦3,000,000

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