POST UTME COAL CITY UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses a supply chain management system to manage its inventory. What is the primary benefit of this system?
A. Improved inventory management
B. Reduced transportation costs
C. Enhanced customer satisfaction
D. Increased production efficiency
Question 2
A company is considering exporting its product to a foreign market. The company's production costs are as follows: labor costs = ₦50 per unit, raw materials costs = ₦30 per unit, and other costs = ₦20 per unit. If the company expects to sell the product for ₦150 per unit in the foreign market, what is the company's profit per unit?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 3
A sole trader has a business income of ₦500,000 and a business expense of ₦200,000. What is the sole trader's profit?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 4
A firm is considering two types of warehouses: a public warehouse and a private warehouse. If the firm chooses a public warehouse, what is the expected outcome?
A. Increased security
B. Decreased security
C. No change in security
D. Increased costs
Question 5
In a warehouse with a capacity of 10,000 units, the inventory level is currently at 8,000 units. The warehouse receives a shipment of 2,000 units on the first day of the month and sells 1,500 units on the same day. If the warehouse operates on a first-in, first-out (FIFO) inventory system, what is the total number of units in the warehouse at the end of the first day?
A. 6,000
B. 7,500
C. 8,500
D. 9,000
Question 6
A company has two production plants, A and B. Plant A produces 100 units of a good per hour, while plant B produces 80 units per hour. The total cost of production for plant A is ( C_A = 200 + 2Q_A ), where Q_A is the quantity produced, and the total cost of production for plant B is ( C_B = 150 + 1.5Q_B ). If the company wants to produce 500 units of the good and minimize its total cost, what is the optimal production level for plant A?
A. 200
B. 250
C. 300
D. 350
Question 7
A company's profit is calculated as the difference between revenue and cost. If the company's revenue is ₦10 million and its cost is ₦8 million, what is the company's profit?
A. ₦1 million
B. ₦2 million
C. ₦3 million
D. ₦4 million
Question 8
A company uses a just-in-time inventory system. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 9
A firm is considering exporting its products to a foreign market. Which of the following is a potential advantage of exporting?
A. Increased market share
B. Increased revenue
C. Reduced competition
D. Improved brand reputation
Question 10
A firm is considering two modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦100 per unit, while the cost of transporting goods by rail is ₦80 per unit. If the firm wants to minimize its transportation cost, what mode of transportation should it choose?
A. Road
B. Rail
C. Both road and rail
D. Neither road nor rail
Question 11
A company is considering exporting its products to a foreign market. If the company chooses to use a freight forwarder, what is the expected outcome?
A. Reduced transportation costs
B. Increased transportation costs
C. No change in transportation costs
D. Increased risk of damage
Question 12
A company purchases an insurance policy that covers losses up to ₦5 million. If the company incurs a loss of ₦3 million, what is the amount the insurance company will pay?
A. ₦3 million
B. ₦5 million
C. ₦2.5 million
D. ₦1.5 million
Question 13
A company is considering investing in a new project. Which of the following is a potential benefit of investing in this project?
A. Increased revenue
B. Increased market share
C. Improved brand reputation
D. Reduced costs
Question 14
A truck driver is transporting goods from Lagos to Abuja. The driver takes a 2-hour break every 4 hours of driving. If the total driving time is 12 hours, how many breaks will the driver take?
A. 2 breaks
B. 3 breaks
C. 4 breaks
D. 5 breaks
Question 15
A firm is considering two marketing strategies: product differentiation and market segmentation. If the firm chooses product differentiation, what is the expected outcome?
A. Increased market share
B. Decreased market share
C. No change in market share
D. Increased competition

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