POST UTME UNILORIN 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?
A. ₦4000
B. ₦5000
C. ₦6000
D. ₦8000
Question 2
A company is considering investing in a new production method that uses advanced technology. Which of the following is a key benefit of investing in advanced technology?
A. Increased efficiency
B. Improved product quality
C. Reduced costs
D. All of the above
Question 3
A company has a production capacity of 10,000 units per month. The company's production costs are ₦50,000 per unit, and the selling price of each unit is ₦80,000. If the company expects to sell 8,000 units in the first month, what is the company's profit?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦800,000
Question 4
A consumer protection agency is investigating a complaint about a company's advertising practices. The company has been accused of making false claims about the benefits of its product. Which of the following is a legal requirement for advertising in Nigeria?
A. The company must provide evidence to support its claims
B. The company must disclose any potential conflicts of interest
C. The company must obtain permission from the consumer protection agency before making any claims
D. The company must only make claims that are supported by scientific evidence
Question 5
A consumer purchases a product for ₦10,000 and pays a 5% sales tax. What is the total amount paid by the consumer?
A. ₦10,500
B. ₦10,525
C. ₦10,550
D. ₦10,575
Question 6
A company is considering outsourcing its production to a foreign country. The company has identified several potential suppliers, each with its own strengths and weaknesses. What is the primary factor that the company should consider when evaluating these suppliers?
A. Cost savings
B. Quality of products
C. Reliability of suppliers
D. Environmental impact
Question 7
A company exports goods to a foreign country. Which of the following is an example of a document that the company may need to prepare for customs clearance?
A. Commercial invoice
B. Bill of lading
C. Certificate of origin
D. Export license
Question 8
A company's sole trader has a warehouse with a capacity of 10,000 units. The company's stock control system uses a first-in-first-out (FIFO) method. If the warehouse is currently 70% full, and 500 units are received, what is the new percentage of the warehouse that is full?
A. 60%
B. 65%
C. 70%
D. 75%
Question 9
A firm is considering investing in a new project. The firm has conducted a cost-benefit analysis and has identified several potential risks associated with the project. What is the primary risk that the firm should consider when evaluating this project?
A. Financial risks
B. Operational risks
C. Strategic risks
D. Environmental risks
Question 10
A sole trader has a business income of ₦500,000 and business expenses of ₦200,000. What is the sole trader's profit before tax?
A. ₦300,000
B. ₦300,500
C. ₦300,000
D. ₦300,500
Question 11
A consumer protection agency has received a complaint about a company's unfair business practices. The agency has gathered evidence that the company has been engaging in price-fixing, which is a violation of the Consumer Protection Act. What is the most appropriate action the agency should take?
A. Issue a warning to the company
B. Impose a fine on the company
C. Suspend the company's business license
D. Prosecute the company's directors
Question 12
A consumer purchases a product from a retailer, but the product is defective. The consumer sues the retailer for breach of contract. What is the remedy available to the consumer?
A. Damages
B. Specific performance
C. Rescission
D. Injunction
Question 13
A firm is considering entering a new market in a foreign country. The firm has conducted market research and has identified a potential customer base. However, the firm is concerned about the risks associated with entering a new market, including cultural differences, language barriers, and regulatory requirements. What is the primary risk that the firm should consider when entering this new market?
A. Cultural differences
B. Language barriers
C. Regulatory requirements
D. Economic instability
Question 14
A consumer purchases a product from a retailer, but the product is defective. The consumer sues the retailer for breach of contract. What is the retailer's defense?
A. The consumer is estopped from claiming damages because they failed to inspect the product before purchase
B. The retailer is not liable for the defect because it was not a party to the contract between the manufacturer and the consumer
C. The retailer is not liable for the defect because it was not a breach of the terms of the contract
D. The retailer is not liable for the defect because it was not a breach of the implied terms of the contract
Question 15
A company is considering expanding its operations to include a new product line. However, this expansion would require an initial investment of ₦2 million. If the company's current cash balance is ₦1.5 million and it has a credit limit of ₦2.5 million, what is the maximum amount the company can borrow from the bank to finance the expansion?
A. ₦500,000
B. ₦1 million
C. ₦1.5 million
D. ₦2 million

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