POST UTME BABCOCK UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A person in Nigeria has a savings account with a bank. The account earns an interest rate of 10% per annum. If the person deposits ₦50,000 into the account and leaves it for 5 years, what is the total amount in the account after 5 years?
A. ₦65,000
B. ₦70,000
C. ₦75,000
D. ₦80,000
Question 2
A sole trader's business is affected by changes in the economy. Which of the following is a likely consequence of a recession?
A. Increased demand for goods and services
B. Reduced competition
C. Decreased consumer spending
D. Increased government spending
Question 3
A consumer has purchased a product with a defect. What is the primary remedy available to the consumer under the Consumer Protection Act?
A. Damages for breach of contract
B. Injunction to stop production of defective products
C. Right to reject the product and claim a refund
D. Compensation for emotional distress
Question 4
A company's transport policy involves reducing its carbon footprint. Which of the following modes of transport is likely to be used?
A. Air travel
B. Rail transport
C. Electric vehicles
D. Bicycles
Question 5
A bank's decision to increase interest rates on loans can have a ripple effect on the entire economy. Which of the following is a likely consequence of this action?
A. Increased consumer spending
B. Reduced inflation
C. Higher unemployment rates
D. Increased business investment
Question 6
A company has a profit of ₦500,000. If it pays 20% tax on its profit, how much will it pay in taxes?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 7
A company has a warehouse with a capacity of 10,000 units. The current inventory level is 8,000 units. If the company receives a new shipment of 2,000 units, what is the new inventory level?
A. 6,000
B. 8,000
C. 10,000
D. 12,000
Question 8
A bank offers a 5-year fixed deposit account with an interest rate of 10% per annum. If a customer deposits ₦100,000, how much will the customer receive at the end of the 5-year period?
A. ₦162,887.43
B. ₦163,887.43
C. ₦164,887.43
D. ₦165,887.43
Question 9
A company is considering implementing a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Enhanced customer satisfaction
Question 10
A company issues a promissory note to a bank as collateral for a loan. What type of security is this?
A. Mortgage
B. Charge
C. Hypothecation
D. Pledge
Question 11
In a just-in-time (JIT) inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
C. To ensure timely delivery of goods
D. To reduce labor costs
Question 12
A company is considering two marketing strategies: a social media campaign and a print advertisement. The social media campaign has a fixed cost of ₦150,000 and a variable cost of ₦5,000 per post. The print advertisement has a fixed cost of ₦200,000 and a variable cost of ₦10,000 per ad. If the company wants to spend a total of ₦500,000 on marketing, how many posts should it create on social media?
A. 100 posts
B. 50 posts
C. 200 posts
D. 75 posts
Question 13
A bank is considering offering a new type of loan product to its customers. The loan product has a variable interest rate that is tied to the prime lending rate. Which of the following is a key risk associated with this type of loan product?
A. The customer may default on the loan
B. The bank may not be able to recover the loan amount
C. The interest rate may increase significantly
D. The loan product may not be attractive to customers
Question 14
A company is considering the establishment of a sole proprietorship. What is the primary advantage of this business structure?
A. Limited liability for the owner
B. Easy to establish and maintain
C. Ability to issue stocks and bonds
D. No requirement for a business plan
Question 15
A company in Nigeria is considering importing goods from a foreign country. The company has two options: Option A, which involves a 10% duty on the total cost of the goods; and Option B, which involves a 5% duty on the total cost of the goods. If the total cost of the goods is ₦50,000, which option should the company choose to minimize the cost?
A. Option A
B. Option B
C. Option C
D. Option D

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