POST UTME UNN 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A business owner purchases an insurance policy to protect against losses due to fire. What type of risk is being managed?
A. Pure Risk
B. Speculative Risk
C. Business Risk
D. Financial Risk
Question 2
A firm is considering two investment projects. Project A has a 10% chance of generating ₦100,000 and a 90% chance of generating ₦0. Project B has a 20% chance of generating ₦80,000 and an 80% chance of generating ₦0. Which project has a higher expected return?
A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return
Question 3
A bank customer deposits ₦100,000 into a savings account. The bank pays an interest rate of 5% per annum. What is the interest earned by the customer after one year?
A. ₦5,000
B. ₦5,250
C. ₦5,500
D. ₦5,750
Question 4
In a perfectly competitive market, what is the relationship between the marginal revenue product of labor and the marginal factor cost of labor?
A. MRP = MFC
B. MRP > MFC
C. MRP < MFC
D. MRP = -MFC
Question 5
The 'law of diminishing marginal utility' states that?
A. as the quantity of a good consumed increases, the marginal utility derived from it also increases
B. as the quantity of a good consumed increases, the marginal utility derived from it remains constant
C. as the quantity of a good consumed increases, the marginal utility derived from it decreases
D. as the quantity of a good consumed increases, the marginal utility derived from it becomes zero
Question 6
A sole trader's business is considered a separate legal entity from its owner. True or False?
A. True
B. False
C. Depends on the jurisdiction
D. Not applicable
Question 7
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is a characteristic of a sales promotion?
A. Offering a discount on a product
B. Creating a new product
C. Using social media to promote a product
D. Hiring a new salesperson
Question 8
A firm's risk management strategy involves identifying, assessing, and mitigating risks. Which of the following is a type of risk?
A. Financial risk
B. Operational risk
C. Strategic risk
D. Compliance risk
Question 9
A company's production process involves the transformation of raw materials into finished goods. Which of the following is an example of a production function?
A. Cost Function
B. Revenue Function
C. Production Function
D. Profit Function
Question 10
A consumer has purchased a product with a 2-year warranty. If the product fails within the warranty period, the consumer is entitled to a replacement or repair. What is the primary purpose of this warranty?
A. To provide the consumer with a refund
B. To offer the consumer a replacement product
C. To guarantee the product's quality and performance
D. To protect the consumer from product liability
Question 11
A company's financial statements provide stakeholders with valuable information about its financial performance and position. Which of the following statements is NOT a typical component of these statements?
A. Balance Sheet
B. Income Statement
C. Statement of Changes in Equity
D. Statement of Cash Flows
Question 12
In the context of consumer protection, what is the primary purpose of the Consumer Protection Act of 1999?
A. To regulate consumer credit
B. To protect consumers from unfair trade practices
C. To promote consumer education
D. To establish consumer tribunals
Question 13
A sole trader's business is considered a separate legal entity from its owner. True or False?
A. True
B. False
C. Depends on the jurisdiction
D. Not applicable
Question 14
Transportation is an essential component of the supply chain. Which of the following is a type of transportation mode?
A. Air transportation
B. Land transportation
C. Sea transportation
D. All of the above
Question 15
A bank is a financial institution that provides various financial services to its customers. What is the main function of a bank?
A. To provide loans to customers
B. To accept deposits from customers
C. To provide investment services to customers
D. All of the above

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