POST UTME BSU 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's sole trader has a warehouse with a capacity of 10,000 units. The company's sales manager has forecasted a 20% increase in sales for the next quarter. If the current stock level is 8,000 units, what is the minimum number of units the company needs to order to meet the forecasted demand?
A. 6,000
B. 8,000
C. 10,000
D. 12,000
Question 2
Under the Consumer Protection Act, what is the primary purpose of the Consumer Protection Council?
A. To regulate consumer behavior
B. To protect consumers from unfair business practices
C. To promote consumer awareness and education
D. To provide consumer redress and compensation
Question 3
A company's insurance policy has a deductible of ₦50,000. If the company suffers a loss of ₦200,000, what is the amount that the insurance company will pay?
A. ₦150,000
B. ₦150,000
C. ₦150,000
D. ₦150,000
Question 4
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee earns ₦100,000 per annum, what is the bonus amount?
A. ₦10,000
B. ₦9,000
C. ₦8,000
D. ₦7,000
Question 5
Determine the optimal pricing strategy for a new product launch in a competitive market, considering the product's life cycle and market demand.
A. Penetration pricing
B. Skimming pricing
C. Price skimming with a premium product
D. Value-based pricing
Question 6
A company's articles of association specify that its shares can be transferred only with the consent of the board of directors. What is the primary purpose of this provision?
A. To prevent the transfer of shares to unauthorized parties
B. To ensure that shares are transferred at a fair market value
C. To restrict the transfer of shares to specific individuals or groups
D. To facilitate the transfer of shares to new investors
Question 7
A consumer's budget constraint is given by P1X + P2Y = I, where P1 and P2 are the prices of two goods, X and Y are the quantities consumed, and I is the consumer's income. If the consumer's income is ₦1000, and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's budget line?
A. 5X + 10Y = 1000
B. 10X + 5Y = 1000
C. 5X + 10Y = 500
D. 10X + 5Y = 500
Question 8
A firm's transport manager has ordered a shipment of goods from a supplier. The goods are to be transported by road and the firm has agreed to pay a fixed charge of ₦20,000 plus a variable charge of ₦5 per kilometer. If the distance to be traveled is 500 kilometers, what is the total cost of transportation?
A. ₦2,500,000
B. ₦2,500,000
C. ₦2,500,000
D. ₦2,500,000
Question 9
A company is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased revenue and profit margins
B. Access to new markets and customers
C. Improved brand recognition and reputation
D. Reduced production costs and overheads
Question 10
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee earns ₦100,000 per annum, what is the amount of the bonus?
A. ₦10,000
B. ₦9,000
C. ₦8,000
D. ₦7,000
Question 11
A company's liability for a defective product can be determined using the following formula: ( ext{Liability} = rac{ ext{Product Value} imes ext{Defect Rate}}{ ext{Total Sales}} ). If the product value is ₦1000, the defect rate is 5%, and the total sales are ₦100,000, what is the company's liability?
A. ₦50
B. ₦500
C. ₦5,000
D. ₦50,000
Question 12
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. If the warehouse is currently 70% full, what is the new percentage of the warehouse that is full after fulfilling the order?
A. 50%
B. 60%
C. 70%
D. 80%
Question 13
A consumer protection agency has been established to regulate the activities of businesses in a particular industry. Which of the following is a primary function of this agency?
A. To ensure that businesses comply with relevant laws and regulations
B. To investigate complaints from consumers and take necessary actions
C. To promote fair competition among businesses
D. To provide training and education to consumers on how to make informed purchasing decisions
Question 14
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). Which of the following is a consequence of this?
A. The sole trader is not entitled to limited liability.
B. The sole trader is not required to file annual returns.
C. The sole trader's business is not eligible for tax deductions.
D. The sole trader's business is not subject to regulatory oversight.
Question 15
A bank offers a loan of ₦500,000 at an interest rate of 15% per annum. If the loan is repaid in 5 years, what is the total amount paid by the borrower?
A. ₦625,000
B. ₦675,000
C. ₦725,000
D. ₦775,000

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