POST UTME UNIPORT 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing opportunity costs. What is the opportunity cost of producing one more unit of a good in this market?
A. The opportunity cost is the price of the good.
B. The opportunity cost is the price of the good plus the cost of production.
C. The opportunity cost is the price of the good minus the cost of production.
D. The opportunity cost is the price of the good plus the cost of production plus the opportunity cost of the next best alternative.
Question 2
A company has a sole trade business with an annual turnover of ₦1,500,000. If the company's profit margin is 15%, what is the company's profit?
A. ₦225,000
B. ₦250,000
C. ₦275,000
D. ₦300,000
Question 3
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what price should it charge?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 4
A firm's transportation costs are directly proportional to the square of the distance traveled. If the firm travels 100 km, what is the ratio of the transportation cost for this distance to the transportation cost for 50 km?
A. 1:1
B. 1:2
C. 1:4
D. 1:8
Question 5
A company's marketing manager has been accused of making false claims about a new product. The company's CEO has been sued for negligence in allowing the false claims to be made. What is the most likely outcome?
A. The company's CEO will be required to pay damages to the plaintiff.
B. The company's marketing manager will be required to pay damages to the plaintiff.
C. The company will be required to recall the product.
D. The company will be exempt from paying damages.
Question 6
A company has a production unit that produces 80% of its total output. If the probability of a loss in this unit is 0.03, what is the overall probability of a loss in the company?
A. 0.024
B. 0.032
C. 0.04
D. 0.048
Question 7
A firm is considering the use of just-in-time (JIT) inventory management system. Which of the following is a major advantage of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Reduced lead times
Question 8
A sole trader's business is considered a separate legal entity from its owner. However, the owner may be held personally liable for certain business debts. What is the name of this type of liability?
A. Unlimited liability
B. Limited liability
C. Joint and several liability
D. Strict liability
Question 9
A consumer protection law requires businesses to provide clear and concise information about their products. What is the primary purpose of this law?
A. To prevent false advertising
B. To protect consumers from unfair business practices
C. To promote transparency in business operations
D. To reduce consumer complaints
Question 10
A company's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company wants to produce 100 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. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 11
A company's sole trader has been sued for negligence in the management of a warehouse. The court has ruled that the company must pay damages to the plaintiff. However, the company's sole trader has no assets to pay the damages. What is the most likely outcome?
A. The company's sole trader will be declared bankrupt.
B. The company's sole trader will be sued again for the same negligence.
C. The company's sole trader will be required to pay the damages from future earnings.
D. The company's sole trader will be exempt from paying damages.
Question 12
A sole trader's business is registered under the sole trader's name. What is the primary advantage of this type of business registration?
A. Easy to set up
B. Low registration fees
C. Personal assets are protected
D. Business can be easily sold
Question 13
A company's marketing strategy involves creating a brand identity that appeals to a specific demographic. Which of the following is a key element of this strategy?
A. Product differentiation
B. Segmentation
C. Target marketing
D. Positioning
Question 14
A company's insurance policy covers losses due to fire, theft, and natural disasters. What type of insurance policy is this?
A. All-risk insurance
B. Named-peril insurance
C. Liability insurance
D. Business interruption insurance
Question 15
A company's insurance policy has a deductible of ₦50,000. The company suffers a loss of ₦200,000. What amount will the company have to pay out of pocket?
A. ₦50,000
B. ₦150,000
C. ₦200,000
D. ₦250,000

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