POST UTME VERITAS UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader, Mr. A, has a business that generates an average profit of ₦500,000 per annum. If he wants to expand his business and increase his profit by 20%, what will be his new average profit?
A. ₦600,000
B. ₦500,000
C. ₦400,000
D. ₦300,000
Question 2
A consumer protection agency is investigating a complaint about a company's warranty policy. The company offers a 1-year warranty on its products, but the consumer claims that the warranty period is too short. Using the concept of consumer protection, what is the minimum warranty period that the company should offer?
A. 2 years
B. 3 years
C. 5 years
D. 10 years
Question 3
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
A. The business is not liable for any debts incurred.
B. The business is not entitled to claim any tax relief.
C. The business is not required to file annual returns.
D. The business is not entitled to use the word 'Limited' in its name.
Question 4
A firm has a production function given by Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm uses 10 units of labor and 5 units of capital, what is the quantity produced?
A. 25
B. 30
C. 35
D. 40
Question 5
A firm is considering investing in a new project that has a 10-year lifespan. The project requires an initial investment of ₦10 million and is expected to generate annual cash flows of ₦2 million for 10 years. What is the net present value (NPV) of the project, assuming a discount rate of 12%?
A. ₦1.5 million
B. ₦2.5 million
C. ₦3.5 million
D. ₦4.5 million
Question 6
A firm is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales promotions. If the firm's current advertising expenditure is ₦100,000 and its current sales promotions expenditure is ₦50,000, what is the total increase in expenditure under Strategy B?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 7
A company has a warehouse with a capacity of 10,000 units. If it receives a shipment of 8,000 units, what is the percentage of the warehouse that is occupied?
A. 20%
B. 30%
C. 40%
D. 50%
Question 8
A company produces two products, A and B. Product A requires 2 hours of labor and 1 hour of machine time, while product B requires 1 hour of labor and 2 hours of machine time. If the company has 8 hours of labor and 6 hours of machine time available, how many units of product A and product B should it produce to maximize profit?
A. 10 units of A and 6 units of B.
B. 8 units of A and 4 units of B.
C. 6 units of A and 2 units of B.
D. 4 units of A and 8 units of B.
Question 9
In a sole trade business, what is the primary advantage of using a cash register?
A. Improved record-keeping
B. Enhanced customer service
C. Increased sales
D. Reduced inventory costs
Question 10
A company has two warehouses, A and B, with capacities of 1000 and 500 units respectively. Warehouse A has 800 units of stock, while warehouse B has 200 units. If the company wants to transfer 300 units from warehouse A to warehouse B, what is the new total capacity of warehouse A?
A. 1200
B. 1000
C. 800
D. 600
Question 11
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 countries is likely to have a comparative advantage in producing textiles?
A. Country A, which has a large labor force and low wages
B. Country B, which has a small labor force and high wages
C. Country C, which has a large labor force and high wages
D. Country D, which has a small labor force and low wages
Question 12
A consumer purchases a product for ₦5,000 and pays a 10% sales tax. What is the total amount paid?
A. ₦5,500
B. ₦5,000
C. ₦5,100
D. ₦5,200
Question 13
A consumer purchases a product with a warranty period of 2 years. The product has a defect after 1 year and 6 months. What is the consumer's entitlement under the warranty?
A. The consumer is entitled to a full refund
B. The consumer is entitled to a partial refund
C. The consumer is entitled to a replacement product
D. The consumer is not entitled to any warranty claim
Question 14
A company uses the following formula to calculate its profit: Profit = Revenue - (Cost of Goods Sold + Operating Expenses). If the revenue is ₦100,000, the cost of goods sold is ₦60,000, and the operating expenses are ₦20,000, what is the profit?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 15
A consumer purchases a product with a price of ₦1,500. The product has a 10% discount for the first 100 customers. What is the price the consumer pays for the product?
A. ₦1,350
B. ₦1,400
C. ₦1,450
D. ₦1,500

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