POST UTME VERITAS UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is affected by the following factors: market demand, competition, and government regulations. Which of the following best describes the impact of these factors on the business?
A. The factors increase the business's revenue
B. The factors decrease the business's revenue
C. The factors have no impact on the business's revenue
D. The factors increase the business's costs
Question 2
A foreign exchange market is a marketplace where
A. Currencies are traded
B. Bonds are traded
C. Stocks are traded
D. Derivatives are traded
Question 3
A bank's interest rate is the rate at which it lends money to its customers, expressed as a percentage of the principal amount borrowed
A. APR
B. APY
C. Interest rate
D. All of the above
Question 4
A company has the following budget constraint: 2X + 3Y = 12, where X is the number of units of good X produced and Y is the number of units of good Y produced. If the company wants to produce 4 units of good X, how many units of good Y can it produce?
A. 2
B. 3
C. 4
D. 5
Question 5
A company is considering expanding its operations to a new market. The company has identified several potential locations, but each location has its own unique characteristics, such as different consumer preferences and regulatory requirements. What type of analysis should the company conduct to determine which location is the most suitable?
A. SWOT analysis
B. Porter's Five Forces analysis
C. PESTEL analysis
D. Boston Consulting Group matrix
Question 6
A firm specializes in producing a single product, and its production function is given by the equation ( Q = 100L^0.5K^0.25 ), where Q is the quantity produced, L is labor, and K is capital. If the firm's current labor and capital inputs are 25 workers and ₦100,000 respectively, what is the maximum quantity of the product that can be produced?
A. 200 units
B. 250 units
C. 300 units
D. 350 units
Question 7
A company is considering outsourcing some of its operations to a third-party vendor. What type of risk is the company taking on by outsourcing its operations?
A. Operational risk
B. Strategic risk
C. Financial risk
D. Reputational risk
Question 8
A company's financial statement can be classified as
A. Balance sheet
B. Income statement
C. Cash flow statement
D. All of the above
Question 9
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to produce 16 units of output, and it has 4 units of labor and 9 units of capital, how much more capital does it need to produce 16 units of output?
A. 1
B. 2
C. 3
D. 4
Question 10
A company's production process involves the following steps: design, manufacturing, and quality control. Which of the following best describes the primary goal of the quality control step?
A. To reduce production costs
B. To increase production efficiency
C. To ensure product quality
D. To improve customer satisfaction
Question 11
A company's dividend policy can be classified as
A. Stable dividend policy
B. Growing dividend policy
C. Irregular dividend policy
D. All of the above
Question 12
A company's articles of association can be amended to change its
A. Name
B. Objectives
C. Share capital
D. All of the above
Question 13
A company has a 10% dividend yield on its shares, and the current market price of the shares is ₦50. If the company pays an annual dividend of ₦5 per share, what is the expected return on investment (ROI) for an investor who buys the shares at the current market price?
A. 5%
B. 10%
C. 15%
D. 20%
Question 14
A warehouse's inventory turnover ratio is calculated by dividing the
A. Cost of goods sold by the average inventory
B. Total sales by the average inventory
C. Total assets by the average inventory
D. Total liabilities by the average inventory
Question 15
A company's insurance policy can be classified as
A. Liability insurance
B. Property insurance
C. Casualty insurance
D. All of the above

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