POST UTME BOWEN UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A person has a life insurance policy with a premium of ₦50,000 per year. If the policy has a 5-year term, what is the total premium paid?
A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000
Question 2
A consumer purchases a product with a price of ₦10,000 and a warranty period of 2 years. If the consumer pays with a credit card that charges a 5% interest rate, what is the total amount paid by the consumer?
A. ₦10,500
B. ₦10,750
C. ₦11,000
D. ₦11,250
Question 3
A bank is considering two different investment options: a high-risk, high-return investment and a low-risk, low-return investment. Which of the following is a key consideration for the bank?
A. The potential return on investment
B. The level of risk involved
C. The liquidity of the investment
D. The tax implications of the investment
Question 4
A company has a fleet of 10 vehicles, each with an average annual mileage of 50,000 km. If the company pays ₦0.50 per km for fuel, what is the total fuel cost for the year?
A. ₦25,000
B. ₦25,500
C. ₦26,000
D. ₦26,500
Question 5
A company's Memorandum and Articles of Association are filed with the Corporate Affairs Commission. What is the purpose of the Memorandum?
A. To outline the company's business objectives
B. To specify the company's share capital
C. To define the company's management structure
D. To provide details of the company's directors
Question 6
A company's break-even point is the point at which its total revenue equals its total
A. fixed costs
B. variable costs
C. total costs
D. net income
Question 7
A sole trader's business is registered under the Companies and Allied Matters Act, 2020. Which of the following is a characteristic of a sole trader?
A. Unlimited liability
B. Limited liability
C. Separate legal entity
D. Single owner
Question 8
The concept of comparative advantage suggests that a country should specialize in producing goods for which it has a lower opportunity
A. cost
B. price
C. opportunity cost
D. sunk cost
Question 9
A firm is considering investing in a new warehouse to store its inventory. The firm's current warehouse is fully utilized, and the firm expects to increase its sales by 20% in the next year. If the firm's current warehouse has a capacity of 10,000 units and the firm expects to sell 12,000 units in the next year, what is the minimum capacity required for the new warehouse?
A. 10,000 units
B. 12,000 units
C. 15,000 units
D. 20,000 units
Question 10
A firm has a liability of ₦100,000 and has a claim of ₦150,000. What is the net liability?
A. ₦50000
B. ₦100000
C. ₦150000
D. ₦200000
Question 11
A firm's supply chain involves the transportation of goods from the factory to the warehouse. Which of the following is a type of transportation mode used in this supply chain?
A. Rail
B. Road
C. Air
D. Water
Question 12
A bank has a reserve requirement of 10% and a cash reserve of ₦100,000. If the bank's total deposits are ₦1,000,000, what is the maximum amount of loans it can make?
A. ₦900,000
B. ₦800,000
C. ₦700,000
D. ₦600,000
Question 13
A consumer purchases a product with a price of ₦5,000 and a discount of 10%. If the consumer pays with a credit card that charges a 5% interest rate, what is the total amount paid by the consumer?
A. ₦5,250
B. ₦5,375
C. ₦5,500
D. ₦5,625
Question 14
A consumer purchases a product for ₦1,000 and pays a 10% sales tax. What is the total amount paid by the consumer?
A. ₦1100
B. ₦1200
C. ₦1300
D. ₦1400
Question 15
A company's insurance policy covers losses due to fire, theft, and natural disasters. Which of the following is NOT a type of risk covered by this policy?
A. Fire
B. Theft
C. Natural disasters
D. Cyber attacks

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