POST UTME COAL CITY UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering investing in a new project that has a payback period of 3 years. However, the firm's cost of capital is 10%. Calculate the net present value (NPV) of the project.
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 2
A company's sole trader has a warehouse with a capacity of 6,000 units. If the company's average daily sales are 200 units, what is the maximum number of days the warehouse can supply the market without reordering?
A. 15 days
B. 20 days
C. 25 days
D. 30 days
Question 3
A company has a risk management policy that requires it to maintain a minimum of ₦50,000 in its risk fund. If the company has a current risk fund balance of ₦30,000 and receives a premium of ₦20,000, what is the new balance in the risk fund?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 4
A company's financial statements include a balance sheet, an income statement, and a cash flow statement. Which of the following is NOT a primary purpose of the balance sheet?
A. To show the company's profitability
B. To show the company's liquidity
C. To show the company's assets, liabilities, and equity
D. To show the company's market value
Question 5
A consumer protection agency has been established to regulate the activities of a company that sells defective products. The agency has received several complaints about the company's failure to honor warranties. Which of the following is a possible consequence of the agency's inaction?
A. The company's reputation will be damaged.
B. The consumers will lose confidence in the agency.
C. The company will be forced to recall the defective products.
D. The agency will be held liable for the company's actions.
Question 6
A company has a warehouse with a capacity of 12,000 units. If the company's average daily sales are 300 units, what is the maximum number of days the warehouse can supply the market without reordering?
A. 25 days
B. 30 days
C. 35 days
D. 40 days
Question 7
A consumer has a utility function U(X, Y) = 2X + 3Y. The prices of the goods are ₦2,000 and ₦3,000, respectively. The consumer's budget is ₦10,000. Calculate the consumer's optimal consumption bundle.
A. X = 2, Y = 3
B. X = 3, Y = 2
C. X = 4, Y = 1
D. X = 1, Y = 4
Question 8
A firm's warehouse is designed to store a large quantity of goods. Which of the following is a characteristic of a warehouse?
A. It is a place where goods are manufactured
B. It is a place where goods are sold
C. It is a place where goods are stored
D. It is a place where goods are transported
Question 9
A company's articles of association may contain provisions that restrict the transfer of shares. What is the purpose of such provisions?
A. To prevent the concentration of ownership
B. To ensure the continuity of management
C. To restrict the transfer of shares
D. To prevent the takeover of the company
Question 10
A firm has a marketing budget of ₦100,000. The firm wants to allocate the budget to advertising and promotion. If the cost of advertising is ₦5 per unit and the cost of promotion is ₦3 per unit, and the firm wants to reach a minimum of 10,000 customers, what is the optimal allocation of the budget?
A. ₦50,000 for advertising and ₦50,000 for promotion
B. ₦60,000 for advertising and ₦40,000 for promotion
C. ₦70,000 for advertising and ₦30,000 for promotion
D. ₦80,000 for advertising and ₦20,000 for promotion
Question 11
A consumer has a budget of ₦10,000 to spend on two goods, X and Y. The prices of the goods are ₦2,000 and ₦3,000, respectively. The consumer's indifference curves are such that the marginal rate of substitution (MRS) between the two goods is 2:1. Calculate the consumer's optimal consumption bundle.
A. X = 2, Y = 3
B. X = 3, Y = 2
C. X = 4, Y = 1
D. X = 1, Y = 4
Question 12
A company's marketing strategy may involve the use of social media platforms to promote its products. What is the name of the type of marketing that involves the use of social media?
A. Digital Marketing
B. Social Media Marketing
C. Content Marketing
D. Influencer Marketing
Question 13
A company is considering two different investment opportunities. Opportunity A has a 10% chance of returning 100,000 and a 90% chance of returning 0. Opportunity B has a 20% chance of returning 150,000 and a 80% chance of returning 0. Which opportunity has a higher expected return?
A. Opportunity A
B. Opportunity B
C. Both opportunities have the same expected return
D. Neither opportunity has a higher expected return
Question 14
A company's directors have a fiduciary duty to act in the best interests of the company and its shareholders. What is the name of the legal doctrine that requires directors to disclose any potential conflicts of interest?
A. Ultramares
B. Fiduciary Duty
C. Conflict of Interest
D. Corporate Governance
Question 15
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 200 units, what is the maximum number of days the warehouse can supply the market without reordering?
A. 20 days
B. 25 days
C. 30 days
D. 35 days

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