POST UTME ABU 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A business's warehouse is used to store raw materials, work-in-progress, and finished goods. What is the primary purpose of a warehouse?
A. To display finished goods to customers
B. To store raw materials, work-in-progress, and finished goods
C. To transport goods from one location to another
D. To sell goods to customers
Question 2
A firm's cost function is given by C = 2L + 3H, where C is cost, L is labor and H is capital. If the firm wants to minimize cost while keeping labor constant at 16 units, what is the optimal level of capital?
A. 8 units
B. 10 units
C. 12 units
D. 14 units
Question 3
A firm is considering the production of a new product that will require an initial investment of ₦3 million. The product is expected to generate revenue of ₦1.5 million per year for 5 years. If the firm's cost of capital is 12% per annum, what is the internal rate of return (IRR) of the investment?
A. 10%
B. 12%
C. 15%
D. 18%
Question 4
A bank's interest rate is 12% per annum compounded quarterly. If ₡,000 is deposited at the beginning of the first quarter, how much will be in the account at the end of the second year?
A. ₡,628.16
B. ₡,628.32
C. ₡,628.48
D. ₡,628.64
Question 5
A company's profit is calculated as the difference between its revenue and cost. If the company's revenue is ₡,000,000 and its cost is ₨00,000, what is the company's profit?
A. ₡,000
B. ₢00,000
C. ₡,200,000
D. ₡,800,000
Question 6
A firm's demand function is given by Q = 100 - 2P. If the price of the good is ₦20, how many units will be demanded?
A. 20
B. 30
C. 40
D. 50
Question 7
The transportation network is a critical component of the production process. What is the primary function of transportation?
A. To move goods from one place to another
B. To store goods
C. To handle goods
D. To finance goods
Question 8
A firm is considering the purchase of a new machine that will cost ₦5 million. The machine is expected to last for 5 years and will save the firm ₦1.2 million per year in labor costs. If the firm's cost of capital is 10% per annum, what is the net present value (NPV) of the investment?
A. ₦2.5 million
B. ₦3.5 million
C. ₦4.5 million
D. ₦5.5 million
Question 9
A company is registered with the Corporate Affairs Commission (CAC) but has not filed its annual returns for the past three years. What is the consequence of this?
A. The company is liable for a fine of ₦50,000.
B. The company is required to pay a penalty of ₦100,000.
C. The company is struck off the register and its assets are forfeited.
D. The company is required to pay a fine of ₦20,000.
Question 10
In a warehouse with a capacity of 10,000 units, the inventory level is currently at 60% capacity. If 500 units are received in a shipment, what is the new inventory level as a percentage of capacity?
A. 40%
B. 50%
C. 60%
D. 70%
Question 11
A bank's interest rate is 12% per annum compounded annually. If ₦10,000 is invested for 3 years, what is the future value of the investment?
A. ₦12,984.24
B. ₦13,984.24
C. ₦14,984.24
D. ₦15,984.24
Question 12
A bank offers a 5-year fixed deposit account with a 10% annual interest rate compounded annually. If ₥0,000 is deposited at the beginning of the first year, how much will be in the account at the end of the fifth year?
A. ₦1,628.93
B. ₦2,628.93
C. ₦3,628.93
D. ₦4,628.93
Question 13
A bank is considering the issuance of a new bond with a face value of ₦10 million and a coupon rate of 8% per annum. If the bank's cost of capital is 10% per annum, what is the yield to maturity (YTM) of the bond?
A. 7%
B. 8%
C. 9%
D. 10%
Question 14
A company's warehouse has a capacity to store 10,000 units of a product. The company currently has 8,000 units in stock and is expecting an additional 2,000 units to be delivered. If the company uses a first-in-first-out (FIFO) inventory system, what is the probability that the company will run out of stock?
A. 0.2
B. 0.3
C. 0.4
D. 0.5
Question 15
A business owner wants to expand its operations to a new location. What is the first step to take?
A. Conduct a market survey to assess demand.
B. Develop a business plan to outline goals and objectives.
C. Secure funding to finance the expansion.
D. Register the business with the Corporate Affairs Commission (CAC).

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