POST UTME WELLSPRING UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses a first-in-first-out (FIFO) inventory system. If the company has 100 units of a product with a cost of ₦50 per unit and 50 units of the same product with a cost of ₦60 per unit, what is the average cost per unit of the product?
A. ₦52.50
B. ₦53.00
C. ₦53.50
D. ₦54.00
Question 2
A sole trader has a business income of ₦500,000 and a business expense of ₦200,000. What is the sole trader's business profit?
A. ₦300,000
B. ₦300,001
C. ₦300,002
D. ₦300,003
Question 3
A company's financial statements are audited annually by an independent auditor. What is the primary purpose of this audit?
A. To verify the company's tax returns
B. To ensure compliance with regulatory requirements
C. To provide an opinion on the company's financial position
D. To identify areas for cost reduction
Question 4
A company is using a new transportation method to deliver goods to customers. Which of the following types of transport would be most relevant to this case?
A. Road Transport
B. Rail Transport
C. Air Transport
D. Water Transport
Question 5
A consumer protection agency is investigating a complaint about a company's unfair business practices. Which of the following laws would be most relevant to this case?
A. Consumer Protection Act
B. Companies Act
C. Competition and Consumer Protection Act
D. Trade Practices Act
Question 6
A company's memorandum of association is a document that outlines the company's
A. Objects and powers
B. Share capital and shareholding
C. Directors and their powers
D. All of the above
Question 7
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a product is likely to be:
A. A downward-sloping curve
B. A horizontal line
C. A vertical line
D. An upward-sloping curve
Question 8
A sole trader's business is considered a separate legal entity from its owner. Which of the following best describes this concept?
A. Separate legal entity
B. Unlimited liability
C. No separate legal entity
D. No unlimited liability
Question 9
A company's sole trader wants to purchase a liability insurance policy to cover potential losses from a business dispute. Which of the following types of insurance policies would be most suitable for this purpose?
A. Professional Indemnity Insurance
B. Public Liability Insurance
C. Employers' Liability Insurance
D. Product Liability Insurance
Question 10
A firm has the following production function: Q = 2L^2 + 3K. If the prices of labor and capital are ₦10 and ₦5 respectively, and the firm has a budget of ₦50, what is the optimal input bundle?
A. (2,5)
B. (5,2)
C. (3,3)
D. (1,10)
Question 11
A company has the following data on its production costs: Fixed costs = ₦100,000, Variable costs = ₦50x, and Total revenue = ₦150x. What is the break-even point?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 12
A company's marketing strategy involves the use of social media platforms to promote its products. What type of communication channel is being used?
A. Print Media
B. Electronic Media
C. Digital Media
D. Personal Selling
Question 13
In a perfectly competitive market, what is the relationship between the marginal revenue product (MRP) of a firm and the marginal factor cost (MFC)?
A. MRP = MFC
B. MRP > MFC
C. MRP < MFC
D. MRP and MFC are unrelated
Question 14
A bank's primary function is to act as a financial intermediary between savers and borrowers. What type of financial institution is this?
A. Commercial Bank
B. Investment Bank
C. Central Bank
D. Development Bank
Question 15
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦100,000, how much cash must it reserve?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000

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