POST UTME DELSU 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's financial statements for the year ended December 31, 2020, showed a net profit of ₦120 million. However, the company's auditor discovered that the company had understated its expenses by ₦30 million. What is the correct net profit for the year?
A. ₦150 million
B. ₦180 million
C. ₦120 million
D. ₦90 million
Question 2
A production process is a series of activities that are used to create a product or service. Discuss the importance of production processes in the context of business and commerce.
A. It ensures that products are created efficiently and effectively
B. It ensures that products are created in a way that minimizes waste and maximizes quality
C. It ensures that products are created in a way that meets customer needs and expectations
D. All of the above
Question 3
A firm is considering two different advertising strategies. Strategy A involves a one-time payment of ₦500,000 and a monthly cost of ₦50,000. Strategy B involves a one-time payment of ₦750,000 and a monthly cost of ₦30,000. If the firm expects to sell 10,000 units per month, what is the total cost of each strategy over a period of 6 months?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 4
A company is considering the introduction of a new product line. The product requires a significant investment in research and development, but it is expected to generate substantial revenue. The company's management is divided on whether to proceed with the new product line. Which of the following is the most appropriate decision-making criterion for the company?
A. Net present value (NPV)
B. Internal rate of return (IRR)
C. Payback period
D. Sensitivity analysis
Question 5
A bank wants to calculate the interest on a loan of ₦500,000 for 2 years at an interest rate of 10% per annum. If the interest is compounded annually, what is the total amount to be paid after 2 years?
A. ₦550,000
B. ₦560,000
C. ₦570,000
D. ₦580,000
Question 6
A sole trader's business is considered a separate legal entity from its owner. Discuss this statement with reference to the concept of limited liability.
A. True
B. False
C. Partially True
D. Depends on the jurisdiction
Question 7
A foreign trade agreement between two countries involves the exchange of goods worth ₦100 million for goods worth 50 million. If the exchange rate is 1 USD = ₦200, what is the value of the goods received by each country in terms of their respective currencies?
A. ₦100 million for ₦50 million
B. ₦50 million for ₦100 million
C. 50 million for ₦100 million
D. 100 million for ₦50 million
Question 8
A company's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). What is the primary purpose of GAAP?
A. To provide a framework for financial reporting
B. To ensure compliance with tax laws
C. To provide a basis for auditing financial statements
D. To provide a basis for financial analysis
Question 9
A bank offers a loan with an interest rate of 10% per annum compounded annually. If the principal amount is ₦100,000 and the loan is repaid after 5 years, what is the total amount paid by the borrower?
A. ₦163,918
B. ₦164,000
C. ₦164,091
D. ₦164,182
Question 10
A company's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. Which of the following is a characteristic of a USP?
A. It is a statement that highlights the product's features and benefits
B. It is a statement that emphasizes the product's price
C. It is a statement that focuses on the product's quality
D. It is a statement that compares the product to a competitor's product
Question 11
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units and has a current stock of 8,000 units. What is the new stock level after fulfilling the order?
A. 3,000 units
B. 5,000 units
C. 8,000 units
D. 10,000 units
Question 12
A company is considering two different production methods for its new product. Method A involves an initial investment of ₦1,500,000 and a variable cost of ₦500 per unit. Method B involves an initial investment of ₦2,000,000 and a variable cost of ₦300 per unit. If the selling price of the product is ₦1,200 per unit, what is the break-even point for each method?
A. 1,000 units
B. 1,500 units
C. 2,000 units
D. 2,500 units
Question 13
A company's marketing strategy involves creating a brand identity that differentiates it from competitors. Which of the following is a characteristic of a brand identity?
A. It is a statement that highlights the product's features and benefits
B. It is a statement that emphasizes the product's price
C. It is a statement that focuses on the product's quality
D. It is a statement that compares the product to a competitor's product
Question 14
A firm's marketing strategy involves a 20% discount on all products sold during a promotional period. If a product originally costs ₦500, what is the selling price during the promotional period?
A. ₦400
B. ₦450
C. ₦500
D. ₦550
Question 15
A company is considering the introduction of a new product line. The product requires a significant investment in research and development, but it is expected to generate substantial revenue. The company's management is divided on whether to proceed with the new product line. Which of the following is the most appropriate decision-making criterion for the company?
A. Net present value (NPV)
B. Internal rate of return (IRR)
C. Payback period
D. Sensitivity analysis

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