POST UTME ACHIEVERS UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a warehouse with a capacity of 5,000 units. The warehouse is currently 80% full, and the manager wants to add 1,500 more units of stock. If the warehouse is rectangular in shape, and the length is 2 times the width, what is the maximum number of units that can be stored in the warehouse?
A. 4,000 units
B. 5,000 units
C. 6,000 units
D. 7,000 units
Question 2
A firm is considering investing in a new project that has a net present value (NPV) of ₦1,500,000. The cost of capital for the firm is 12%. What is the internal rate of return (IRR) of the project?
A. 10%
B. 12%
C. 15%
D. 18%
Question 3
A company is considering a new marketing strategy that involves creating a social media campaign to promote its products. The campaign will be run for 6 months, and the company expects to spend ₦1,500,000 per month on advertising. If the company's profit margin is 25%, and it sells each product for ₦5,000, what is the minimum number of products the company must sell to break even?
A. 2,000 products
B. 3,000 products
C. 4,000 products
D. 5,000 products
Question 4
A company is considering two different marketing strategies for its new product. The first strategy involves a high level of advertising and promotion, while the second strategy involves a low level of advertising and promotion. Which of the following is a potential advantage of the second strategy?
A. Increased market share
B. Reduced production costs
C. Improved brand recognition
D. Lower marketing expenses
Question 5
A firm is considering exporting its product to a foreign market. What is the name of the document that the firm needs to obtain in order to export its product?
A. Export License
B. Import License
C. Certificate of Origin
D. Commercial Invoice
Question 6
A bank has a reserve requirement of 10% for its customers. If a customer has a deposit of ₦100000, how much will the bank be required to hold in reserve?
A. ₦10000
B. ₦100000
C. ₦1000000
D. ₦10000000
Question 7
A firm is considering investing in a new project that has a net present value (NPV) of ₦1,000,000. The cost of capital for the firm is 10%. What is the internal rate of return (IRR) of the project?
A. 12%
B. 15%
C. 18%
D. 20%
Question 8
A company has a sole trader structure. What is the primary disadvantage of this structure?
A. Limited liability
B. Easy to set up
C. No need for formalities
D. Unlimited personal liability
Question 9
A company has a sole trader structure. What is the primary advantage of this structure?
A. Limited liability
B. Easy to set up
C. No need for formalities
D. No tax benefits
Question 10
A company uses the following transportation costs per unit: Road: ₦20, Rail: ₦30, Air: ₦50. If the company needs to transport 100 units, what is the minimum cost?
A. ₦2000
B. ₦3000
C. ₦5000
D. ₦6000
Question 11
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units. What is the minimum number of units that the company must hold in stock?
A. 2,000
B. 3,000
C. 4,000
D. 5,000
Question 12
A company has a warehouse with a capacity of 1000 units. The warehouse is currently 75% full. If 150 units are added to the warehouse, what is the new percentage capacity?
A. 50%
B. 60%
C. 75%
D. 90%
Question 13
A company is considering launching a new product in the Nigerian market. Which of the following marketing strategies would be most effective in creating awareness about the product?
A. Social media advertising
B. Influencer marketing
C. Television commercials
D. Print media advertising
Question 14
A sole trader is considering expanding their business to include a new product line. Which of the following is a key advantage of a sole trader business structure?
A. Easy to set up and maintain
B. Limited liability for owners
C. Ability to raise capital from investors
D. Flexibility to make decisions quickly
Question 15
A company is considering two marketing strategies: Strategy A involves a high initial investment with a potential for high returns, while Strategy B involves a low initial investment with a potential for lower returns. If the company chooses Strategy A, it will have to spend ₦1,500,000 on advertising. If it chooses Strategy B, it will have to spend ₦500,000 on advertising. The company's profit function is given by P(x) = 2x^2 - 1000x + 5000, where x is the number of units sold. If the company sells 100 units, what is the total cost of the marketing strategy?
A. ₦2,000,000
B. ₦1,500,000
C. ₦1,000,000
D. ₦500,000

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