POST UTME VERITAS UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
B. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
C. Country A produces 100 units of good X and 100 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 50 units of good Y, while Country B produces 100 units of good X and 100 units of good Y.
Question 2
A company's Memorandum of Association is a public document. True or False?
A. True
B. False
C. It depends on the type of company
D. It is a private document
Question 3
In a perfectly competitive market, the supply curve is a
A. Horizontal line
B. Vertical line
C. U-shaped curve
D. S-shaped curve
Question 4
A company has a production process that involves the use of a machine. The machine has a capacity to produce 100 units per hour. If the company operates for 8 hours a day, what is the total number of units produced in a day?
A. 800 units
B. 1000 units
C. 1200 units
D. 1600 units
Question 5
A company's financial statements show that its assets have increased by 20% and its liabilities have increased by 15%. What is the change in its equity?
A. 5%
B. 10%
C. 15%
D. 20%
Question 6
A consumer protection law may provide for the right to a refund in certain circumstances. What is the primary purpose of a consumer protection law?
A. To protect the interests of businesses
B. To promote fair competition among businesses
C. To safeguard the rights of consumers
D. To regulate the prices of goods and services
Question 7
A company may engage in international trade by exporting goods to another country. What is the primary advantage of exporting goods?
A. Increased revenue
B. Reduced competition
C. Improved market share
D. Access to new markets
Question 8
A company has a warehouse with a capacity of 10,000 units. If the company receives a shipment of 5,000 units, what is the percentage of the warehouse that is occupied?
A. 25%
B. 30%
C. 40%
D. 50%
Question 9
A sole trader's business may be subject to certain taxes and levies. Which of the following is a type of tax that a sole trader's business may be subject to?
A. Value-added tax (VAT)
B. Pay-as-you-earn (PAYE)
C. Capital gains tax
D. Income tax
Question 10
A company has a warehouse with a capacity to store 1000 units. If the company receives 500 units of goods, what is the percentage of the warehouse's capacity that is utilized?
A. 25%
B. 50%
C. 75%
D. 100%
Question 11
A company has a stock of 1,000 units, with a reorder level of 500 units. If the company receives an order for 200 units, what is the new stock level?
A. 800
B. 900
C. 1,000
D. 1,200
Question 12
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. It is not a separate legal entity
Question 13
A company X has a paid-up capital of ₦5,000,000. The company issues 10,000 ordinary shares of ₦500 each. What is the company's capital structure?
A. ₦5,000,000 in equity and ₦0 in debt
B. ₦5,000,000 in debt and ₦0 in equity
C. ₦5,000,000 in equity and ₦0 in debt
D. ₦5,000,000 in debt and ₦0 in equity
Question 14
A consumer is considering purchasing a new product. The product has a price of ₦500 and a quality rating of 8 out of 10. Which of the following is a correct example of a consumer decision-making process?
A. Problem Recognition, Information Search, Evaluation of Alternatives, Purchase Decision
B. Problem Recognition, Information Search, Evaluation of Alternatives, Post-Purchase Evaluation
C. Problem Recognition, Information Search, Purchase Decision, Post-Purchase Evaluation
D. Problem Recognition, Purchase Decision, Post-Purchase Evaluation, Information Search
Question 15
A sole trader's business is not required to file accounts with the registrar of companies. True or False?
A. True
B. False
C. It depends on the size of the business
D. It depends on the type of business

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