POST UTME VERITAS UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the law of diminishing marginal utility implies that as the quantity of a good increases, the marginal utility of each additional unit of the good
A. decreases
B. remains constant
C. increases
D. becomes negative
Question 2
A company has a market share of 30% in the industry. If the industry's total sales revenue is ₦10 billion, what is the company's market value?
A. ₦3 billion
B. ₦3.5 billion
C. ₦4 billion
D. ₦4.5 billion
Question 3
The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?
A. To investigate complaints from consumers
B. To regulate the activities of businesses
C. To provide education and awareness to consumers
D. To enforce consumer protection laws
Question 4
A warehouse has a capacity of 10,000 units. The current stock level is 8,000 units. What is the remaining capacity?
A. 2,000 units
B. 8,000 units
C. 10,000 units
D. 12,000 units
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 400 units of output, and the wage rate is ₦50 per hour, and the rental rate is ₦20 per unit of capital, what is the optimal combination of labor and capital?
A. L = 100, K = 100
B. L = 50, K = 200
C. L = 200, K = 50
D. L = 100, K = 200
Question 6
A company's sole trader is responsible for all the profits and losses of the business. What is the name of this type of business organization?
A. Partnership
B. Limited Liability Company
C. Sole Trader
D. Cooperative Society
Question 7
A sole trader, Mr. A, has a business income of ₦500,000 and a business expense of ₦200,000. If he has a personal income of ₦300,000 and a personal expense of ₦100,000, what is his total taxable income?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 8
A consumer purchases a product with a 10% discount. If the original price of the product is ₦1,500, what is the amount of the discount?
A. ₦150
B. ₦150.00
C. ₦150.00
D. ₦150
Question 9
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's current level of labor and capital are L = 4 and K = 9, respectively, what is the firm's current level of output?
A. 13
B. 15
C. 17
D. 19
Question 10
A sole trader's business is considered a separate legal entity from its owner. However, in the event of a lawsuit, the owner's personal assets may be at risk. What is the name of the legal doctrine that protects the owner's personal assets?
A. Separate Legal Entity
B. Limited Liability
C. Personal Liability
D. Corporate Veil
Question 11
A company has a debt of ₦10 million and an equity of ₦20 million. If the company's debt-to-equity ratio is 0.5, what is the company's total capital?
A. ₦15 million
B. ₦20 million
C. ₦25 million
D. ₦30 million
Question 12
A company has a production capacity of 100 units per day. However, due to a shortage of raw materials, the company can only produce 80 units per day. What is the name of the production concept that the company is experiencing?
A. Scarcity
B. Opportunity Cost
C. Limited Capacity
D. Economies of Scale
Question 13
A company is considering investing in a new project that has a 5-year lifespan. The initial investment required is ₦10 million, and the expected annual returns are ₦2 million. The company's cost of capital is 10% per annum. Using the net present value (NPV) method, calculate the NPV of the project.
A. ₦5.6 million
B. ₦6.2 million
C. ₦7.1 million
D. ₦8.5 million
Question 14
A consumer is considering purchasing a product that has a 2-year warranty. Which of the following is a key benefit of the warranty?
A. The product is more likely to be durable
B. The consumer has peace of mind
C. The consumer can return the product if it is defective
D. The consumer can upgrade the product
Question 15
A company's marketing mix is given by the 4 Ps: Product, Price, Place, and Promotion. If the company wants to increase sales, which of the following would be the most effective strategy?
A. Increase the price of the product
B. Improve the quality of the product
C. Increase the advertising budget
D. Improve the distribution channels

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