POST UTME UNIOSUN 2017 Commerce | Objective

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Question 1
A firm is considering two different production processes to produce a product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the firm produces 10,000 units, what is the total cost of production for each process?
A. Process A: ₦1,550,000; Process B: ₦1,350,000
B. Process A: ₦1,350,000; Process B: ₦1,550,000
C. Process A: ₦1,500,000; Process B: ₦1,400,000
D. Process A: ₦1,400,000; Process B: ₦1,500,000
Question 2
A sole trader's business is considered a separate legal entity from its owner. Discuss this statement with reference to the concept of limited liability.
A. The sole trader's business is not a separate legal entity from its owner.
B. The sole trader's business is a separate legal entity from its owner, but with limited liability.
C. The sole trader's business is a separate legal entity from its owner, with unlimited liability.
D. The sole trader's business is not a separate legal entity from its owner, with limited liability.
Question 3
A company's insurance policy has a deductible of ₦50,000. If the company suffers a loss of ₦200,000, how much will it receive from the insurance company?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 4
A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?
A. Liability
B. Taxation
C. Ownership
D. Management
Question 5
A company is considering two different marketing strategies: a push strategy and a pull strategy. What is the primary difference between these two strategies?
A. A push strategy focuses on the consumer, while a pull strategy focuses on the product
B. A push strategy focuses on the product, while a pull strategy focuses on the consumer
C. A push strategy is more expensive than a pull strategy
D. A pull strategy is more effective than a push strategy
Question 6
A company's memorandum of association is a document that outlines the company's objectives, powers, and rules. Discuss the importance of this document in the context of company law.
A. The memorandum of association is a document that outlines the company's objectives, powers, and rules.
B. The memorandum of association is a document that outlines the company's objectives and rules.
C. The memorandum of association is a document that outlines the company's powers and rules.
D. The memorandum of association is a document that outlines the company's objectives only.
Question 7
A firm is considering two different advertising options: a print ad and a digital ad. What is the primary advantage of a digital ad?
A. A digital ad is more targeted than a print ad
B. A digital ad is less expensive than a print ad
C. A digital ad is more measurable than a print ad
D. A digital ad is more effective than a print ad
Question 8
A firm's revenue is ₦1,000,000. Its total fixed costs are ₦500,000 and its variable costs are ₦200,000. What is the firm's break-even point?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 9
In a perfectly competitive market, the supply curve is typically represented by the marginal cost curve. What is the implication of this relationship on the firm's profit-maximizing output?
A. The firm will produce at the lowest point on the marginal cost curve.
B. The firm will produce at the point where the marginal cost curve intersects the demand curve.
C. The firm will produce at the point where the marginal cost curve intersects the average variable cost curve.
D. The firm will produce at the point where the marginal cost curve intersects the average fixed cost curve.
Question 10
A consumer protection law aims to safeguard consumers from unfair business practices. Which of the following is a key provision of consumer protection laws?
A. Right to Refund
B. Right to Compensation
C. Right to Information
D. Right to Sue
Question 11
A sole trader's business is considered a separate legal entity from its owner. Discuss this statement with reference to the concept of limited liability.
A. The sole trader's business is not a separate legal entity from its owner.
B. The sole trader's business is a separate legal entity from its owner, but with limited liability.
C. The sole trader's business is a separate legal entity from its owner, with unlimited liability.
D. The sole trader's business is not a separate legal entity from its owner, with limited liability.
Question 12
A business's transport management system uses a just-in-time (JIT) delivery method to reduce inventory costs. What is the primary benefit of this method?
A. Reduced transportation costs
B. Improved inventory turnover
C. Enhanced supply chain visibility
D. Simplified inventory management
Question 13
A company's articles of association are a set of rules that govern the company's internal management. What is the primary purpose of these articles?
A. To define the company's objectives
B. To outline the company's management structure
C. To specify the company's share capital
D. To regulate the company's financial transactions
Question 14
A company is considering exporting its products to a foreign market. What is the primary advantage of using a foreign trade agreement?
A. Reduced tariffs
B. Increased market share
C. Improved logistics
D. Enhanced brand reputation
Question 15
A company has a warehouse with a capacity of 10,000 units. It receives a shipment of 5,000 units. What is the new capacity of the warehouse?
A. 5,000 units
B. 10,000 units
C. 15,000 units
D. 20,000 units

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