POST UTME COVENANT UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's supply chain is designed to minimize transportation costs. Which of the following is a key principle of supply chain design?
A. Just-in-time (JIT) inventory management
B. Economies of scale in transportation
C. Reducing transportation costs
D. Minimizing storage costs
Question 2
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied of that commodity will
A. decrease
B. increase
C. remain constant
D. move in the opposite direction
Question 3
A sole trader is considering forming a partnership with another business owner. Which of the following is a key advantage of forming a partnership?
A. Increased financial resources
B. Improved management skills
C. Enhanced reputation
D. Reduced personal liability
Question 4
A company has a sole trader business structure. What is the primary advantage of this structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. No tax benefits
Question 5
A company has a warehouse with a capacity to store 1000 units of a product. If the company has already stored 500 units and wants to store 200 more units, what is the remaining capacity of the warehouse?
A. 300
B. 400
C. 500
D. 600
Question 6
A company's marketing strategy involves a 20% discount on all products for the first 100 customers. What is the expected revenue from the first 100 customers if the original price of each product is ₦500?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 7
A company has a 10% dividend yield on its shares. If the current market price of the shares is ₦100, what is the expected dividend per share?
A. ₦10
B. ₦9
C. ₦8
D. ₦7
Question 8
A firm's warehouse is designed to store goods in a way that minimizes the risk of damage. Which of the following is a key principle of warehouse design?
A. First-in, first-out (FIFO) inventory management
B. Last-in, first-out (LIFO) inventory management
C. Economies of scale in storage
D. Minimizing storage costs
Question 9
A company has a sole trader business structure. What is the primary advantage of this structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. No tax benefits
Question 10
A company's profit function is given by P = R - C, where P is the profit, R is the revenue, and C is the cost. If the company's revenue is ₦10000 and its cost is ₦5000, what is its profit?
A. ₦2500
B. ₦3500
C. ₦4500
D. ₦5500
Question 11
A sole trader, Mr. A, has a business income of ₦1,500,000 and a business expenditure of ₦1,200,000. What is Mr. A's business profit?
A. ₦300,000
B. ₦200,000
C. ₦150,000
D. ₦100,000
Question 12
A company has a transportation cost of ₦10 per unit for a product. If the company transports 500 units of the product, what is its total transportation cost?
A. ₦4000
B. ₦5000
C. ₦6000
D. ₦7000
Question 13
A firm's cash flow is the movement of cash and cash equivalents into and out of the firm. Which of the following is a correct example of a cash inflow?
A. ( ext{Cash inflow} = ext{Sales revenue} + ext{Cost of goods sold} )
B. ( ext{Cash inflow} = ext{Sales revenue} - ext{Operating expenses} )
C. ( ext{Cash inflow} = ext{Sales revenue} - ext{Cost of goods sold} + ext{Operating expenses} )
D. ( ext{Cash inflow} = ext{Sales revenue} - ext{Cost of goods sold} - ext{Operating expenses} )
Question 14
A consumer purchases a product with a 12% annual interest rate and a 5-year loan term. What is the total interest paid over the loan term?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 15
A firm's break-even point is the point at which its total revenue equals its total fixed costs. Which of the following is a correct formula for calculating the break-even point?
A. ( ext{Break-even point} = rac{ ext{Fixed costs}}{ ext{Selling price} + ext{Variable costs}} )
B. ( ext{Break-even point} = rac{ ext{Fixed costs}}{ ext{Selling price} - ext{Variable costs}} )
C. ( ext{Break-even point} = rac{ ext{Fixed costs}}{ ext{Selling price} imes ext{Variable costs}} )
D. ( ext{Break-even point} = rac{ ext{Fixed costs}}{ ext{Selling price} - ext{Fixed costs}} )

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: