POST UTME COVENANT UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank's balance sheet is a financial statement that presents its assets, liabilities, and equity at a specific point in time. Which of the following is NOT a type of asset on a bank's balance sheet?
A. Cash
B. Loans
C. Investments
D. Deposits
Question 2
A company's sole trader is considering expanding its operations to a new market. The company's current profit is ₦1,500,000, and it expects to increase its profit by 20% in the new market. However, the company will also incur additional costs of ₦300,000. What is the expected profit of the company in the new market?
A. ₦1,800,000
B. ₦1,900,000
C. ₦2,100,000
D. ₦2,200,000
Question 3
A company's foreign trade policy is designed to promote exports and imports. Which of the following is NOT a type of trade barrier?
A. Tariff
B. Quota
C. Subsidy
D. Export Promotion
Question 4
A consumer protection law requires businesses to provide clear and accurate information about their products. This is an example of which of the following consumer protection measures?
A. Labeling
B. Packaging
C. Advertising
D. Warranty
Question 5
A sole trader is considering expanding their business to a partnership. What are the main advantages of a partnership compared to a sole trader?
A. Increased financial resources
B. Shared risk and responsibility
C. Improved decision-making
D. All of the above
Question 6
A firm's warehouse is designed to store goods in a way that minimizes the risk of damage. This is an example of which of the following warehousing strategies?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. Just-In-Time (JIT)
D. Cross-Docking
Question 7
The concept of 'Gross Domestic Product' (GDP) is a measure of the total value of all final goods and services produced within a country's borders over a specific time period. Which of the following is NOT a component of GDP?
A. Imports
B. Exports
C. Government Consumption
D. Investment
Question 8
A sole trader has a business that specializes in producing and selling handmade crafts. The business has a fixed cost of ₦50,000 per month and a variable cost of ₦10 per unit sold. The selling price of each unit is ₦20. What is the break-even point for the business?
A. 100 units
B. 200 units
C. 500 units
D. 1000 units
Question 9
A logistics company uses a transportation management system to optimize its delivery routes. What is the primary benefit of using this system?
A. Reduced transportation costs
B. Improved delivery times
C. Enhanced customer satisfaction
D. Increased fuel efficiency
Question 10
A company's marketing strategy involves creating a sense of exclusivity among its customers. This is an example of which of the following marketing tactics?
A. Scarcity
B. Exclusivity
C. Social Proof
D. Authority
Question 11
A company is considering entering into a contract with a supplier. The contract includes a clause that requires the company to pay a penalty of ₦100,000 if it fails to meet its delivery deadline. What type of contract is this?
A. Fixed-price contract
B. Cost-plus contract
C. Penalty contract
D. Time-and-materials contract
Question 12
A company is considering outsourcing its logistics to a third-party provider. What are the main benefits of outsourcing logistics?
A. Reduced costs
B. Improved efficiency
C. Increased flexibility
D. All of the above
Question 13
A consumer is considering purchasing a product online. What are the main risks associated with online shopping?
A. Identity theft
B. Credit card fraud
C. Product damage during shipping
D. All of the above
Question 14
A firm specializes in producing a single product, which is a type of commodity. The production process involves a series of complex steps, including raw material extraction, processing, and manufacturing. What is the primary advantage of specialization in this context?
A. Increased efficiency
B. Reduced production costs
C. Improved product quality
D. Enhanced market competition
Question 15
A company is considering the introduction of a new product line. The product requires a significant investment in inventory and production capacity. Which of the following inventory control methods is most appropriate for this situation?
A. Just-In-Time (JIT) inventory control
B. Economic Order Quantity (EOQ) inventory control
C. Periodic Review System (PRS) inventory control
D. Continuous Review System (CRS) inventory control

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