POST UTME AAUA 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering exporting goods to the United States. Which of the following is a key requirement for exporting goods to the US?
A. Obtaining a US import license
B. Obtaining a US export license
C. Complying with US customs regulations
D. Complying with US tax laws
Question 2
A company is considering using a lean management approach to improve its operations. Which of the following is a key principle of lean management?
A. Elimination of waste
B. Continuous improvement
C. Employee involvement
D. All of the above
Question 3
A company is considering two different distribution channels for its new product. Channel A involves a high initial investment of ₦5 million and a fixed cost of ₦500,000 per unit distributed. Channel B involves a low initial investment of ₦2 million and a fixed cost of ₦250,000 per unit distributed. If the company expects to distribute 15,000 units, what is the total cost of distribution for each channel?
A. ₦7.5 million
B. ₦3.75 million
C. ₦10 million
D. ₦12.5 million
Question 4
A company is considering the introduction of a new product line. The product line has a high fixed cost of ₦500 million and a variable cost of ₦50,000 per unit. The selling price of the product is ₦75,000 per unit. If the company expects to sell 10,000 units, what is the minimum revenue required to break even?
A. ₦500 million
B. ₦750 million
C. ₦1.25 billion
D. ₦1.5 billion
Question 5
A company's stock price is affected by the following factors: interest rates, inflation, and government policies. Which of the following is the most significant factor?
A. Interest rates
B. Inflation
C. Government policies
D. All of the above
Question 6
The concept of 'just-in-time' inventory system is most closely related to which of the following transportation modes?
A. Air Freight
B. Truckload
C. Intermodal
D. Rail
Question 7
A company is considering two different production processes for its new product. Process A requires an initial investment of ₦5 million and has a fixed cost of ₦2 million per unit produced. Process B requires an initial investment of ₦3 million and has a fixed cost of ₦1.5 million per unit produced. If the company expects to produce 10,000 units, what is the total cost of production for each process?
A. ₦25 million
B. ₦20 million
C. ₦30 million
D. ₦35 million
Question 8
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 50,000 shares to the public, what is the amount of share premium?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 9
A company is considering the introduction of a new product. The product has a high demand, but the production costs are also high. Which of the following is a correct marketing strategy for this product?
A. The company should focus on reducing production costs to increase profit margins.
B. The company should focus on increasing the product's quality to increase customer satisfaction.
C. The company should focus on increasing the product's price to increase revenue.
D. The company should focus on increasing the product's advertising to increase demand.
Question 10
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 is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 200 units of cloth.
Question 11
A firm is considering the introduction of a new product line. The product line has a high fixed cost of ₦500 million and a variable cost of ₦50,000 per unit. The selling price of the product is ₦75,000 per unit. If the company expects to sell 10,000 units, what is the minimum revenue required to break even?
A. ₦500 million
B. ₦750 million
C. ₦1.25 billion
D. ₦1.5 billion
Question 12
A company uses the following data to calculate its weighted average cost of capital (WACC):
A. Debt: 60%, Equity: 40%
B. Debt: 40%, Equity: 60%
C. Debt: 50%, Equity: 50%
D. Debt: 70%, Equity: 30%
Question 13
A warehouse is a facility used for storing goods. Which of the following is a type of warehouse?
A. Cold storage warehouse
B. Dry warehouse
C. Bonded warehouse
D. All of the above
Question 14
The Consumer Protection Act of 1999 provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. The Act provides for the establishment of a Consumer Protection Council
B. The Act provides for the protection of consumers from unfair trade practices
C. The Act provides for the establishment of a Consumer Protection Agency
D. The Act provides for the protection of consumers from false advertising
Question 15
A firm is considering two different pricing strategies for its new product. Strategy A involves a high initial price of ₦10,000 per unit and a discount of 10% for bulk purchases. Strategy B involves a low initial price of ₦5,000 per unit and a discount of 20% for bulk purchases. If the firm expects to sell 20,000 units, what is the total revenue for each strategy?
A. ₦80 million
B. ₦60 million
C. ₦100 million
D. ₦120 million

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