POST UTME UNIPORT 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer protection agency has received a complaint from a customer who was charged an excessive interest rate on a loan. The customer claims that the interest rate is unfair and excessive. Using the concept of usury, determine whether the interest rate charged by the lender is excessive.
A. Excessive
B. Fair
C. Usurious
D. Unfair
Question 2
A firm's revenue function is given by R = 2x^2 - 3x + 1. If the firm's marginal revenue is 10, what is the optimal quantity to produce?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 3
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?
A. Obtain a Tax Identification Number (TIN)
B. Register with the Corporate Affairs Commission (CAC)
C. Obtain a Business Name Certificate
D. Obtain a Trade License
Question 4
A consumer's budget constraint is given by 2x + 3y = 100. If the consumer's income is 100 and the price of good x is 2, what is the maximum amount the consumer can spend on good y?
A. 30
B. 40
C. 50
D. 60
Question 5
A company is considering the introduction of a new insurance product. The product requires an initial investment of ₦1 million and is expected to generate annual profits of ₦500,000 for the next 3 years. The company's cost of capital is 12% per annum. Using the concept of risk management, determine the expected return on investment (ROI) for the new insurance product.
A. 20%
B. 25%
C. 30%
D. 35%
Question 6
A company's insurance policy covers losses due to fire, theft, and liability. However, the policy excludes losses due to flood and earthquake. What is the legal effect of this exclusion?
A. The exclusion is valid and the company is not entitled to claim for losses due to flood and earthquake.
B. The exclusion is invalid and the company is entitled to claim for losses due to flood and earthquake.
C. The exclusion is valid but the company can still claim for losses due to flood and earthquake if it can prove that the losses were not caused by the excluded events.
D. The exclusion is invalid but the company must still pay the premium for the excluded events.
Question 7
A company is considering the introduction of a new product line. The product requires an initial investment of ₦5 million and is expected to generate annual profits of ₦2 million for the next 5 years. The company's cost of capital is 10% per annum. Using the net present value (NPV) method, calculate the expected return on investment (ROI) for the new product line.
A. 20%
B. 25%
C. 30%
D. 35%
Question 8
The main advantage of a sole proprietorship is that it
A. has unlimited liability
B. has limited liability
C. is easy to set up
D. has a high level of control
Question 9
A foreign company wishes to establish a branch office in Nigeria. What are the necessary steps the company must take to comply with Nigerian laws and regulations?
A. Register the branch office with the Corporate Affairs Commission (CAC) and obtain a business permit from the relevant state government.
B. Obtain a license from the Nigerian Investment Promotion Commission (NIPC) and register the branch office with the CAC.
C. Register the branch office with the CAC and obtain a tax clearance certificate from the Federal Inland Revenue Service (FIRS).
D. Obtain a business permit from the relevant state government and register the branch office with the CAC.
Question 10
A bank's customer account is overdrawn by ₦50,000. The bank charges an overdraft fee of 5% per annum on the overdrawn amount. What is the total amount the customer must pay to settle the overdraft?
A. ₦55,000
B. ₦57,500
C. ₦60,000
D. ₦62,500
Question 11
A consumer has the following utility function: U(x, y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal consumption bundle?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 12
A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.
A. The owner's personal assets are protected from business liabilities.
B. The owner's personal assets are at risk of being seized to settle business debts.
C. The business is not required to pay taxes on its profits.
D. The business is not required to file annual returns with the relevant authorities.
Question 13
A consumer protection agency has received a complaint from a customer who was charged an interest rate of 20% per annum on a loan of ₦100,000. The customer claims that the interest rate is excessive and unfair. Using the concept of usury, determine whether the interest rate charged by the lender is excessive.
A. Excessive
B. Fair
C. Usurious
D. Unfair
Question 14
A company in Nigeria has a contract with a supplier to purchase goods worth ₦1,000,000. The contract specifies that the goods must be delivered within 30 days. If the supplier fails to deliver the goods within the specified time, what is the company's recourse?
A. The company can terminate the contract and claim damages
B. The company can claim specific performance
C. The company can claim liquidated damages
D. The company can claim interest on the contract price
Question 15
A company has a capital of ₦10,000,000 divided into 100,000 shares of ₦100 each. If the company issues 80,000 shares at a premium of ₦20 per share, what is the amount received from the issue of shares?
A. ₦8,000,000
B. ₦9,600,000
C. ₦10,000,000
D. ₦11,200,000

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