POST UTME COAL CITY UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different modes of transportation for its goods: road and rail. What are the main advantages of using rail transportation?
A. Rail transportation is faster, more reliable, and has lower operating costs.
B. Rail transportation is slower, less reliable, and has higher operating costs.
C. Rail transportation is more environmentally friendly, has lower labor costs, and is more secure.
D. Rail transportation is less environmentally friendly, has higher labor costs, and is less secure.
Question 2
The concept of specialization in production is closely related to the idea of comparative advantage. What is the main difference between the two?
A. Comparative advantage is about producing goods at a lower opportunity cost, while specialization is about producing a specific good.
B. Specialization is about producing a specific good, while comparative advantage is about producing goods at a lower opportunity cost.
C. Comparative advantage is about producing goods at a lower opportunity cost, while specialization is about producing a variety of goods.
D. Specialization is about producing a variety of goods, while comparative advantage is about producing goods at a lower opportunity cost.
Question 3
A company is considering exporting its product to a foreign market. The company has estimated that the cost of exporting the product will be ₦5 million, and the revenue from the sale of the product will be ₦20 million. However, the company is also concerned about the risk of currency fluctuations, which could affect the profitability of the export. What is the company's expected profit from the export?
A. ₦15 million
B. ₦10 million
C. ₦5 million
D. ₦0 million
Question 4
A company is considering setting up a new business unit in a foreign country. What are the key factors that the company should consider when evaluating the potential risks and benefits of this decision?
A. Political stability, labor costs, and access to raw materials.
B. Market demand, competition, and government regulations.
C. Currency exchange rates, interest rates, and inflation rates.
D. All of the above.
Question 5
A company is considering importing goods from a foreign market. What is the main advantage of using a company as a business unit?
A. A company has unlimited liability, which can provide a sense of security for the business.
B. A company has limited liability, which can provide a sense of security for the business.
C. A company has more flexibility in decision-making, which can be beneficial for a large business.
D. A company has less flexibility in decision-making, which can be detrimental to a large business.
Question 6
A consumer is considering purchasing a product that has a price of ₦500 and a discount of 20%. What is the final price that the consumer will pay for the product?
A. ₦400
B. ₦450
C. ₦500
D. ₦550
Question 7
A company is considering exporting its products to a foreign market. What is the main advantage of using a company as a business unit?
A. A company has unlimited liability, which can provide a sense of security for the business.
B. A company has limited liability, which can provide a sense of security for the business.
C. A company has more flexibility in decision-making, which can be beneficial for a large business.
D. A company has less flexibility in decision-making, which can be detrimental to a large business.
Question 8
A consumer is considering purchasing a product that has a price of ₦500 and a discount of 20%. What is the final price that the consumer will pay for the product?
A. ₦400
B. ₦450
C. ₦500
D. ₦550
Question 9
A consumer is considering purchasing a product that has a warranty period of 2 years. What are the key benefits and risks associated with purchasing a product with a warranty?
A. The consumer has peace of mind and protection against defects.
B. The consumer has to pay for repairs and maintenance.
C. The consumer has to return the product to the manufacturer.
D. The consumer has to purchase additional insurance.
Question 10
A consumer is considering purchasing a product from a company that has a poor reputation for environmental sustainability. What is the main risk associated with this decision?
A. The product may be of poor quality.
B. The company may not honor its warranty.
C. The consumer may experience difficulty in returning or exchanging the product.
D. The consumer may be charged a higher price than expected due to the company's environmental practices.
Question 11
A sole trader's business is registered under which of the following?
A. Business Name
B. Partnership
C. Limited Liability Company
D. Sole Trader
Question 12
A consumer is considering purchasing a product that has a warranty period of 2 years. What are the key benefits and risks associated with purchasing a product with a warranty?
A. The consumer has peace of mind and protection against defects.
B. The consumer has to pay for repairs and maintenance.
C. The consumer has to return the product to the manufacturer.
D. The consumer has to purchase additional insurance.
Question 13
A company is considering setting up a new production facility in a foreign country. What are the key factors that the company should consider when evaluating the potential risks and benefits of this decision?
A. Political stability, labor costs, and access to raw materials.
B. Market demand, competition, and government regulations.
C. Currency exchange rates, interest rates, and inflation rates.
D. All of the above.
Question 14
A company's insurance policy covers which of the following?
A. Liability
B. Property
C. Workers' Compensation
D. All of the above
Question 15
A company is considering two different production strategies to manufacture its product. Strategy A involves producing the product in-house, which will cost ₦5 million per unit. Strategy B involves outsourcing the production of the product to a third-party supplier, which will cost ₦3 million per unit. However, the company is also concerned about the risk of quality control, which could affect the profitability of the product. What is the company's expected profit from the product?
A. ₦2 million
B. ₦1 million
C. ₦0 million
D. -₦1 million

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: