POST UTME CALEB UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering the purchase of a new machine that costs ₦1,500,000. The machine is expected to last for 5 years and will reduce the firm's annual operating costs by ₦300,000. The firm's cost of capital is 10% per annum. What is the net present value (NPV) of the machine?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,100,000
Question 2
A company has a 10% dividend yield on its stock. If the current market price of the stock is ₦100, what is the expected dividend payment per share?
A. ₦10
B. ₦5
C. ₦2
D. ₦1
Question 3
A company's marketing strategy involves creating a new product line to target a specific demographic. Which of the following marketing mix elements is most closely related to this strategy?
A. Product
B. Price
C. Promotion
D. Place
Question 4
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units. What is the new inventory level?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 5
A firm is considering the purchase of a new machine that costs ₦1,500,000. The machine is expected to last for 5 years and will reduce the firm's annual operating costs by ₦300,000. The firm's cost of capital is 10% per annum. What is the payback period of the machine?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
Question 6
The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?
A. To regulate consumer credit
B. To protect consumers from unfair trade practices
C. To promote consumer education and awareness
D. To investigate consumer complaints
Question 7
A firm is considering exporting its products to a foreign market. Which of the following is a key consideration in this decision?
A. Tariff barriers
B. Cultural differences
C. Language barriers
D. Exchange rate fluctuations
Question 8
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units and has a stock of 2,000 units. If the company wants to fulfill the order and maintain a safety stock of 20% of the warehouse capacity, what is the maximum number of units that can be ordered?
A. 4,000
B. 6,000
C. 8,000
D. 10,000
Question 9
A company's financial year ends on March 31st. What is the accounting period for the year 2021?
A. January 1st, 2021 - December 31st, 2021
B. April 1st, 2021 - March 31st, 2022
C. January 1st, 2022 - December 31st, 2022
D. April 1st, 2022 - March 31st, 2023
Question 10
A bank's reserve requirement is 10%. If the bank has a deposit of ₦100,000, how much must it keep in reserve?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 11
A company has a policy of paying 10% of its profits as dividends to its shareholders. If the company makes a profit of ₦1,000,000, how much will it pay as dividends?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 12
A sole trader, Mr. A, has a business that generates an average monthly profit of ₦200,000. If he wants to save ₦1,000,000 in 6 months, what rate of interest should he earn on his savings?
A. 10%
B. 12%
C. 15%
D. 18%
Question 13
A company's financial statements show a net income of ₦1,000,000 and a total assets of ₦5,000,000. What is the company's return on assets (ROA) percentage?
A. 20%
B. 25%
C. 30%
D. 35%
Question 14
A transportation company's primary function is to move goods and people from one place to another. Which of the following is a type of transportation?
A. Road transport
B. Rail transport
C. Air transport
D. Water transport
Question 15
A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following is a type of bank?
A. Commercial bank
B. Investment bank
C. Central bank
D. Savings bank

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