POST UTME SUMMIT UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is registered under the sole trader's name. What is the name of this type of business registration?
A. Partnership
B. Company
C. Sole Trader
D. Limited Liability Partnership
Question 2
A company has a production function Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the company increases labor from 100 to 121 units and capital from 100 to 121 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A company is considering investing in a new transportation system. What is the primary factor that determines the feasibility of the investment?
A. Cost of transportation
B. Time of transportation
C. Reliability of transportation
D. Security of transportation
Question 4
A company's financial statements include a balance sheet, income statement, and cash flow statement. Which of the following is NOT a primary purpose of the balance sheet?
A. To show the company's financial position at a specific date.
B. To show the company's financial performance over a specific period.
C. To show the company's cash and cash equivalents.
D. To show the company's long-term liabilities.
Question 5
A firm's demand function is given by Q = 100 - 2P, where Q is quantity and P is price. If the firm's fixed cost is ₦5,000 and its variable cost is ₦10 per unit, what is the firm's profit-maximizing price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A sole trader is considering expanding their business. What is the primary advantage of forming a company?
A. Limited liability
B. Increased tax benefits
C. Improved management structure
D. Enhanced customer service
Question 7
A bank offers a loan to a customer at an interest rate of 12% per annum. The loan is repayable over 5 years. What is the total interest paid by the customer over the life of the loan?
A. ₦12,500
B. ₦15,000
C. ₦17,500
D. ₦20,000
Question 8
A sole trader, Mr. A, has a business that generates an annual profit of ₦500,000. The business has a capital of ₦200,000. What is the return on investment (ROI) of the business?
A. 20%
B. 25%
C. 30%
D. 35%
Question 9
The concept of specialization in production is closely related to the idea of division of labor. Discuss how specialization can lead to increased productivity and efficiency in a firm.
A. Increased productivity and efficiency are achieved through the use of specialized machines and equipment.
B. Specialization leads to a decrease in the number of workers required, resulting in lower labor costs.
C. The division of labor allows for the development of new skills and expertise among workers.
D. The concept of specialization is only relevant in large-scale industrial production.
Question 10
A bank has the following balance sheet: Assets = ₦500,000, Liabilities = ₦200,000, Equity = ₦300,000. What is the bank's capital adequacy ratio?
A. 60%
B. 70%
C. 80%
D. 90%
Question 11
A company is considering exporting its products to a foreign market. What is the primary factor that determines the success of the export venture?
A. Market demand
B. Competitor analysis
C. Transportation costs
D. Tariff and trade policies
Question 12
A company has the following balance sheet: Assets = ₦100,000, Liabilities = ₦50,000, Equity = ₦50,000. What is the company's current ratio?
A. 2:1
B. 1:1
C. 1:2
D. 3:1
Question 13
A company is considering investing in a new project. The project has a high potential return but also involves a high level of risk. Which of the following is a key consideration in the decision-making process?
A. Financial return
B. Risk level
C. Market demand
D. Competitor analysis
Question 14
A warehouse has a storage capacity of 10,000 units. If the warehouse is currently storing 8,000 units, what is the percentage of the warehouse's capacity that is currently being used?
A. 80%
B. 85%
C. 90%
D. 95%
Question 15
A marketing manager is developing a new advertising campaign for a product. What is the primary goal of the campaign?
A. To increase brand awareness
B. To generate leads
C. To drive sales
D. To build customer loyalty

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