POST UTME ABU 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a contract with a supplier to purchase 10,000 units of a product at a price of ₦100 per unit. If the company has already paid ₦900,000 to the supplier, how much more does the company need to pay to fulfill the contract?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 2
A firm imports goods worth 10,000 from a foreign country. If the exchange rate is 1 USD = ₦420, calculate the value of the goods in Nigerian naira.
A. ₦4,200,000
B. ₦4,200,000.00
C. ₦4,200,000.00
D. ₦4,200,000
Question 3
A firm's break-even point is the point at which its total revenue equals its total cost. What is the formula for calculating the break-even point?
A. \frac{FC}{P - V}
B. \frac{P - V}{FC}
C. \frac{FC}{P + V}
D. \frac{P + V}{FC}
Question 4
A company's sole trader has invested ₦500,000 in a business venture. If the venture generates a profit of ₦200,000, what is the sole trader's return on investment (ROI) in percentage?
A. 20%
B. 25%
C. 30%
D. 35%
Question 5
A firm's cash flow statement is a financial statement that shows the inflows and outflows of cash and cash equivalents over a specific period. What is the main purpose of a cash flow statement?
A. To show the firm's profitability
B. To show the firm's liquidity
C. To show the firm's cash inflows and outflows
D. To show the firm's solvency
Question 6
A sole trader has invested ₦300,000 in a business venture. If the venture generates a profit of ₦150,000, what is the sole trader's return on investment (ROI) in percentage?
A. 20%
B. 25%
C. 30%
D. 35%
Question 7
A company's sole trader is considering the purchase of a new warehouse. The warehouse has a capacity of 10,000 units and can be rented for ₦250 per unit per month. The company currently stores its goods in a rented warehouse with a capacity of 5,000 units, rented at ₦300 per unit per month. If the company expects to increase its storage needs by 20% next year, what is the total cost of renting the new warehouse for the next 12 months?
A. ₦3,000,000
B. ₦3,600,000
C. ₦4,200,000
D. ₦4,800,000
Question 8
A bank's interest rate is 12% per annum. If a customer deposits ₦100,000 for 2 years, what is the interest earned?
A. ₦24,000
B. ₦24,000.00
C. ₦24,000.00
D. ₦24,000
Question 9
A consumer protection agency has received a complaint about a company's unfair business practices. The agency has the power to investigate the company and impose penalties if necessary. What is the primary purpose of the agency's investigation?
A. To determine whether the company has violated any laws or regulations
B. To impose penalties on the company
C. To educate the company about its business practices
D. To promote the company's products
Question 10
A consumer is considering purchasing a product from a company that has a history of producing high-quality products. However, the consumer is also aware that the company has been involved in some controversies in the past. What is the primary consideration for the consumer in deciding whether to purchase the product?
A. The consumer should consider the potential risks and costs associated with purchasing the product.
B. The consumer should consider the potential benefits and advantages of purchasing the product.
C. The consumer should consider the potential impact on the company's reputation and brand image.
D. The consumer should consider the potential impact on the consumer's own reputation and social standing.
Question 11
A company has issued a bond with a face value of ₦1,000,000 and a coupon rate of 8%. If the bond is held for 5 years, what is the total interest earned?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦800,000
Question 12
Determine the value of x in the equation ( rac{x}{2} + 5 = 11 ).
A. 6
B. 7
C. 8
D. 9
Question 13
A company's sole trader is considering the purchase of a new warehouse. The warehouse has a capacity of 10,000 units and can be rented for ₦250 per unit per month. The company currently stores its goods in a rented warehouse with a capacity of 5,000 units, rented at ₦300 per unit per month. If the company expects to increase its storage needs by 20% next year, what is the total cost of renting the new warehouse for the next 12 months?
A. ₦3,000,000
B. ₦3,600,000
C. ₦4,200,000
D. ₦4,800,000
Question 14
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how specialization can lead to increased productivity and efficiency in a firm.
A. Specialization leads to increased productivity and efficiency because it allows firms to focus on producing a specific good or service, thereby reducing costs and improving quality.
B. Specialization leads to decreased productivity and efficiency because it limits the firm's ability to diversify and adapt to changing market conditions.
C. Specialization has no impact on productivity and efficiency because it is simply a matter of firms producing what they are best at.
D. Specialization leads to increased productivity and efficiency because it allows firms to take advantage of economies of scale and reduce their costs.
Question 15
A company's sole trader is considering the purchase of a new warehouse. The warehouse has a capacity of 10,000 units and can be rented for ₦250 per unit per month. The company currently stores its goods in a rented warehouse with a capacity of 5,000 units, rented at ₦300 per unit per month. If the company expects to increase its storage needs by 20% next year, what is the total cost of renting the new warehouse for the next 12 months?
A. ₦3,000,000
B. ₦3,600,000
C. ₦4,200,000
D. ₦4,800,000

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