POST UTME VERITAS UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's insurance policy has a deductible of ₦10,000 and a maximum payout of ₦50,000. If the company incurs a loss of ₦75,000, what is the maximum amount the insurance company will pay?
A. ₦25,000
B. ₦35,000
C. ₦45,000
D. ₦55,000
Question 2
A company's financial statements are audited annually by an independent auditor. The auditor's report is presented to the shareholders at the annual general meeting. Which of the following is the primary purpose of the auditor's report?
A. To provide an opinion on the company's financial position
B. To identify any material weaknesses in internal control
C. To express an opinion on the fairness of the financial statements
D. To provide an opinion on the company's compliance with laws and regulations
Question 3
A company exports 500 units of a product to a foreign country. The selling price per unit is 20, and the exchange rate is 1 USD = 400 NGN. What is the total revenue in Naira?
A. ₦4,000,000
B. ₦4,500,000
C. ₦5,000,000
D. ₦5,500,000
Question 4
In a sole trader business, what is the primary advantage of using a separate business bank account?
A. Easy accounting and tax compliance
B. Improved business credibility and reputation
C. Enhanced financial security and reduced risk
D. Increased business flexibility and adaptability
Question 5
A consumer has a budget constraint of 100, and the prices of two goods are 5 and 10, respectively. If the consumer's indifference curve is tangent to the budget line, what is the consumer's optimal consumption bundle?
A. (10, 10)
B. (20, 5)
C. (15, 7.5)
D. (5, 20)
Question 6
A firm's supply curve is upward-sloping because as the price of its product increases, it becomes more
A. profitable
B. expensive
C. difficult to produce
D. attractive
Question 7
In a perfectly competitive market, the law of diminishing marginal utility is most relevant to the production of which of the following goods?
A. Giffen Goods
B. Normal Goods
C. Inferior Goods
D. Substitutes
Question 8
A bank offers a credit card with an annual interest rate of 18% and a minimum monthly payment of ₦500. If the customer's outstanding balance is ₦10,000, how much will the customer pay in interest over the first year?
A. ₦1,800
B. ₦1,900
C. ₦2,000
D. ₦2,100
Question 9
A firm's supply curve is given by the equation Q = 2P + 10, where Q is the quantity supplied and P is the price. What is the slope of the supply curve?
A. -2
B. 2
C. -10
D. 10
Question 10
A bank's reserve requirement is set by the central bank at 10% of deposits. If a bank has 100,000 in deposits, how much must it hold in reserve?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 11
A country's trade balance is given by TB = X - M, where X is the value of exports and M is the value of imports. If the country's current trade balance is TB = 100 and the value of imports is M = 150, what is the value of exports?
A. 200
B. 250
C. 300
D. 350
Question 12
A bank offers a credit card with an interest rate of 18% per annum. If the customer's outstanding balance is ₦20,000 and the interest is compounded monthly, what is the total amount the customer will owe after 6 months?
A. ₦24,919.19
B. ₦25,000.00
C. ₦25,119.19
D. ₦25,200.00
Question 13
In the context of home and foreign trade, what is the primary objective of a country's trade policy?
A. To maximize exports and minimize imports
B. To balance trade deficits and surpluses
C. To promote economic growth and development
D. To protect domestic industries and jobs
Question 14
A firm's cost of capital is the minimum return required by investors for a given level of risk. What is the primary factor that affects a firm's cost of capital?
A. The firm's size and market share
B. The firm's financial leverage and debt-to-equity ratio
C. The firm's industry and market conditions
D. The firm's management team and corporate governance
Question 15
A firm's revenue is maximized when its marginal revenue equals its
A. marginal cost
B. average cost
C. marginal revenue
D. average revenue

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