Practice Post UTME CALEB UNIVERSITY commerce 2021 Past Questions

Question 1

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?

Correct A. Product

B. Price

C. Promotion

D. Place

Correct Answer: A

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Question 2

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

Correct D. Exchange rate fluctuations

Correct Answer: D

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Question 3

A consumer is considering purchasing a product online. Which of the following is a key factor in their decision?

A. Price

B. Quality

Correct C. Convenience

D. Warranty

Correct Answer: C

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Question 4

A company is considering entering into a contract with a supplier. Which of the following is a key consideration in this decision?

A. Price

B. Quality

C. Reliability

Correct D. Payment terms

Correct Answer: D

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Question 5

A firm is considering investing in a new project. Which of the following is a key consideration in this decision?

A. Return on investment

B. Break-even analysis

Correct C. Cash flow projections

D. Market research

Correct Answer: C

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Question 6

A company is considering the introduction of a new product line. The company's management has decided to use the Break-Even Analysis (BEA) method to determine the feasibility of the new product line. Which of the following is NOT a step in the BEA method?

A. Determine the selling price and variable cost per unit

B. Calculate the break-even point in units

C. Determine the contribution margin ratio

Correct D. Calculate the net operating income

Correct Answer: D

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Question 7

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?

Correct A. ₦1,200,000

B. ₦1,500,000

C. ₦1,800,000

D. ₦2,100,000

Correct Answer: A

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Question 8

A company is considering the introduction of a new product line. The company's management has decided to use the Decision Tree Analysis (DTA) method to determine the feasibility of the new product line. Which of the following is NOT a step in the DTA method?

A. Identify the decision variables

B. Identify the probability distributions

C. Calculate the expected value

Correct D. Calculate the variance

Correct Answer: D

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Question 9

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

Correct B. 3 years

C. 4 years

D. 5 years

Correct Answer: B

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Question 10

A company is considering the introduction of a new product line. The company's management has decided to use the Sensitivity Analysis (SA) method to determine the feasibility of the new product line. Which of the following is NOT a step in the SA method?

A. Identify the decision variables

B. Identify the probability distributions

C. Calculate the expected value

Correct D. Calculate the variance

Correct Answer: D

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Question 11

A sole trader's business is registered under which of the following?

A. Partnership

B. Limited Liability Company

Correct C. Sole Proprietorship

D. Cooperative Society

Correct Answer: C

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Question 12

In a warehouse, the inventory turnover ratio is calculated as the cost of goods sold divided by the average inventory. What is the formula for this ratio?

Correct A. \frac{COGS}{Average Inventory}

B. \frac{Average Inventory}{COGS}

C. \frac{COGS + Average Inventory}{2}

D. \frac{COGS - Average Inventory}{2}

Correct Answer: A

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Question 13

A company's financial year ends on March 31st. What is the accounting period for the year 2021?

Correct 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

Correct Answer: A

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Question 14

A bank's reserve requirement is 10%. If the bank has a deposit of ₦100,000, how much must it keep in reserve?

Correct A. ₦10,000

B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: A

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Question 15

A company's stock control system uses the first-in-first-out (FIFO) method. If the company has 100 units of stock, and 20 units are sold, how many units will be left?

Correct A. 80

B. 90

C. 100

D. 120

Correct Answer: A

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Question 16

A company is considering the introduction of a new product line. The product has a high fixed cost of ₦500,000 and a variable cost of ₦100 per unit. The selling price of the product is ₦150 per unit. If the company expects to sell 10,000 units, what is the minimum price at which the product must be sold to break even?

A. ₦120

B. ₦130

Correct C. ₦140

D. ₦150

Correct Answer: C

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Question 17

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%

Correct B. 12%

C. 15%

D. 18%

Correct Answer: B

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Question 18

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

Correct B. 6,000

C. 8,000

D. 10,000

Correct Answer: B

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Question 19

A company is considering the introduction of a new product line. The product has a high fixed cost of ₦500,000 and a variable cost of ₦100 per unit. The selling price of the product is ₦150 per unit. If the company expects to sell 10,000 units, what is the minimum price at which the product must be sold to break even?

A. ₦120

B. ₦130

Correct C. ₦140

D. ₦150

Correct Answer: C

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Question 20

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%

Correct B. 12%

C. 15%

D. 18%

Correct Answer: B

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Question 21

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

Correct C. To reduce lead times

D. To increase inventory turnover

Correct Answer: C

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Question 22

A company uses a transportation mode that involves the movement of goods by land, sea, and air. What is the primary advantage of this mode?

A. Flexibility in transportation routes

B. Reduced transportation costs

Correct C. Increased speed of delivery

D. Improved security of goods

Correct Answer: C

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Question 23

A marketing manager is developing a new product launch campaign. Which of the following marketing mix elements is most relevant to the campaign?

A. Product

B. Price

Correct C. Promotion

D. Place

Correct Answer: C

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Question 24

A bank offers a credit card with a 20% annual interest rate and a minimum payment of 2% of the outstanding balance. What is the minimum payment if the outstanding balance is ₦10,000?

A. ₦200

Correct B. ₦200.00

C. ₦200.00

D. ₦200.00

Correct Answer: B

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Question 25

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%

Correct B. 25%

C. 30%

D. 35%

Correct Answer: B

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