POST UTME BELLS UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?
A. Limited liability
B. Separate tax returns
C. Separate business bank account
D. Separate business registration
Question 2
A consumer has a budget of ₦500 and a preference for two goods: A and B. The prices of these goods are ₦100 and ₦200 respectively. If the consumer spends all their budget on good B, how much of good A can they afford?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 3
A company's marketing strategy involves creating a new product line. What type of market research would be most relevant to this decision?
A. Competitor analysis
B. Market segmentation
C. Product life cycle analysis
D. SWOT analysis
Question 4
A company is considering implementing a warehouse management system (WMS) to improve its inventory management. The WMS is expected to reduce inventory costs by 15% and improve inventory turnover by 10%. However, the WMS will also require an initial investment of ₦150,000. What is the expected return on investment (ROI) for the WMS?
A. 10%
B. 12%
C. 15%
D. 18%
Question 5
A company's financial statements are audited annually by an independent auditor to ensure compliance with accounting standards and regulatory requirements. This process is known as
A. Financial Statement Analysis
B. Auditing
C. Financial Planning
D. Financial Reporting
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, how many units of capital (K) are required?
A. 4
B. 8
C. 16
D. 32
Question 7
A consumer has a budget of ₦1,000 and a preference for two goods: A and B. The prices of these goods are ₦200 and ₦300 respectively. If the consumer spends all their budget on good A, how much of good B can they afford?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 8
A company is considering outsourcing its logistics to a third-party provider. The third-party provider has offered a 10% discount on the current logistics costs. However, the company will also have to pay a 5% fee to the third-party provider. What is the net effect on the company's logistics costs?
A. 5% increase
B. 5% decrease
C. 10% decrease
D. No change
Question 9
In a sole proprietorship, the owner's personal assets are protected from business liabilities through a legal entity known as a(n)
A. Trust
B. Corporation
C. Partnership
D. Limited Liability Company
Question 10
A company's foreign trade involves the importation of goods from a foreign country. This is an example of
A. Export
B. Import
C. Domestic Trade
D. International Trade
Question 11
The risk management process involves identifying, assessing, and mitigating risks to minimize their impact on the organization. This process is also known as
A. Risk Avoidance
B. Risk Transfer
C. Risk Mitigation
D. Risk Acceptance
Question 12
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied also increases. However, this is not always the case. What is the name of the phenomenon that occurs when an increase in price leads to a decrease in quantity supplied?
A. Giffen Goods
B. Inferior Goods
C. Normal Goods
D. Substitutes
Question 13
A firm is considering the production of a new product. The firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 100 units of the product, how many units of labor and capital should it hire?
A. L = 25, K = 25
B. L = 50, K = 50
C. L = 100, K = 100
D. L = 200, K = 200
Question 14
A company has a production capacity of 5000 units of goods per month. The company wants to increase its production by 20% to meet the increasing demand. What is the new production capacity of the company?
A. 6000
B. 5500
C. 5000
D. 4500
Question 15
A warehouse's inventory management system involves tracking stock levels. What type of inventory control system would be most effective in this scenario?
A. Just-in-time inventory system
B. Economic order quantity (EOQ) system
C. Material requirements planning (MRP) system
D. Total quality management (TQM) system

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: