POST UTME SUMMIT UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares to the public at a premium of ₦5 per share, what is the total amount received from the public?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 2
A firm purchases an insurance policy to protect against losses due to fire. Which of the following is an example of risk management?
A. Risk avoidance
B. Risk transfer
C. Risk retention
D. Risk reduction
Question 3
A company is considering launching a new product. The company's marketing team has estimated that the product will generate ₦500,000 in revenue in the first year, with a growth rate of 10% per annum. What is the total revenue generated by the product over a period of 5 years?
A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000
Question 4
A firm specializes in producing only one product. This specialization is an example of which of the following production concepts?
A. Economies of scale
B. Division of labor
C. Product differentiation
D. Vertical integration
Question 5
A consumer has purchased a product from a company, but is dissatisfied with its quality. The consumer has filed a complaint with the company, but the company has failed to respond. What is the consumer's next course of action?
A. File a lawsuit against the company.
B. Contact the company's customer service department.
C. Report the company to the relevant regulatory agency.
D. Post a negative review on social media.
Question 6
A company has two business units: A and B. Unit A has a profit of ₦120,000 and a loss of ₦80,000. Unit B has a profit of ₦150,000 and a loss of ₦70,000. What is the overall profit of the company?
A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦100,000
Question 7
A firm produces two goods, X and Y, using two inputs, labor (L) and capital (K). The production function for good X is given by Q_X = 2L^0.4K^0.6. The production function for good Y is given by Q_Y = 3L^0.7K^0.3. If the firm has 100 units of labor and 50 units of capital, how many units of good X will it produce?
A. 200
B. 250
C. 300
D. 350
Question 8
A company is using a marketing strategy that involves creating a sense of urgency to encourage customers to make a purchase. Which of the following is an example of this strategy?
A. Limited-time offer
B. Free trial
C. Discount for first-time customers
D. Gift with purchase
Question 9
A consumer has a budget of ₦100,000 and is considering two goods, A and B. Good A costs ₦50,000 and good B costs ₦60,000. If the consumer buys good A, how much money will they have left to spend on good B?
A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000
Question 10
A firm exports goods to another country. Which of the following is an example of home trade?
A. Importation of goods
B. Exportation of goods
C. Domestic trade
D. Foreign trade
Question 11
A company has two business units: A and B. Unit A has a profit of ₦120,000 and a loss of ₦80,000. Unit B has a profit of ₦150,000 and a loss of ₦70,000. What is the overall profit of the company?
A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦100,000
Question 12
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following statements best describes the opportunity cost of a country?
A. The value of a good that could have been produced instead
B. The quantity of a good that could have been produced instead
C. The price of a good that could have been produced instead
D. The quality of a good that could have been produced instead
Question 13
A firm's profit function is given by π = R - C. If the firm's revenue is ₦100 and its cost is ₦60, what is its profit?
A. ₦20
B. ₦40
C. ₦60
D. ₦80
Question 14
A firm's cost function is given by C = 2L + 3K. If the firm hires 4 units of labor and 2 units of capital, what is its total cost?
A. ₦14
B. ₦16
C. ₦18
D. ₦20
Question 15
A firm's inventory turnover ratio is 8.5 times per year. If the total value of the inventory is ₦2,100,000, what is the cost of goods sold?
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,100,000
D. ₦2,400,000

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