POST UTME ELIZADE UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering implementing a just-in-time inventory system. Which of the following is a benefit of this system?
A. Reduced inventory costs.
B. Improved customer satisfaction.
C. Increased efficiency in production.
D. All of the above.
Question 2
A consumer purchases a product with a list price of ₦20,000 and a discount of 15%. Calculate the amount of discount and the selling price.
A. ₦3,000, ₦17,000
B. ₦2,500, ₦17,500
C. ₦3,500, ₦16,500
D. ₦4,000, ₦16,000
Question 3
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 50,000 shares to the public, what is the amount of share capital received?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 4
A bank offers a 5-year fixed deposit account with an interest rate of 10% per annum compounded annually. If a customer deposits ₦100,000, what is the amount of interest earned after 5 years?
A. ₦21,091
B. ₦21,191
C. ₦21,291
D. ₦21,391
Question 5
A firm is considering two different production processes for a new product. Process A has a fixed cost of ₦10,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦20,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦100 per unit, and the firm expects to sell 1,000 units, which process should the firm choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 6
A consumer purchases a product with a price of ₦5,000 and a 10% discount. If the consumer pays ₦4,500, what is the amount of the discount?
A. ₦500
B. ₦1,000
C. ₦1,500
D. ₦2,000
Question 7
A sole trader in Nigeria 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 8
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. decrease
B. increase
C. remain constant
D. become elastic
Question 9
A consumer protection agency has received a complaint about a company that is selling a product with a misleading label. The label claims that the product is '100% natural' when in fact it contains 20% artificial ingredients. Which of the following is a correct statement about the agency's response?
A. The agency should fine the company and order it to change the label.
B. The agency should investigate the company's manufacturing process to determine the extent of the deception.
C. The agency should inform the public about the misleading label and allow the company to correct it.
D. The agency should take no action, as the company is not violating any laws.
Question 10
A warehouse in Nigeria stores goods worth ₦10 million. The warehouse is insured against theft and damage. The insurance premium is ₦200,000 per annum. What is the insurance premium as a percentage of the total value of the goods?
A. 2%
B. 1%
C. 0.5%
D. 0.2%
Question 11
A country is considering imposing tariffs on imported goods to protect its domestic industry. Which of the following is a potential consequence of this policy?
A. Increased competition in the domestic market.
B. Reduced prices for consumers.
C. Increased unemployment in the domestic industry.
D. All of the above.
Question 12
Determine the optimal inventory level for a firm that produces and sells a single product, given the following data: Demand rate = 100 units/day, Lead time = 5 days, Production rate = 200 units/day, Holding cost per unit = ₦50, Ordering cost per order = ₦500, and Carrying cost per unit per day = ₦10.
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 13
A company is considering exporting a product to a foreign market. The product has a domestic price of ₦100 per unit and a foreign price of ₦120 per unit. The transportation cost is ₦20 per unit, and the exchange rate is 1 USD = ₦200. If the company expects to sell 1,000 units, what is the profit per unit in USD?
A. 0.20
B. 0.30
C. 0.40
D. 0.50
Question 14
A company in Nigeria has a share capital of ₦1 million, divided into 10,000 shares of ₦100 each. The company issues 5,000 shares to the public at a premium of ₦20 per share. What is the total amount received from the public?
A. ₦1,050,000
B. ₦1,050,000
C. ₦1,050,000
D. ₦1,050,000
Question 15
A company is considering implementing a just-in-time (JIT) inventory system. The JIT system would reduce inventory holding costs by 20% but would also increase ordering costs by 15%. If the current inventory holding costs are ₦50,000 per year and the current ordering costs are ₦30,000 per year, what would be the net effect on costs?
A. Costs would decrease by ₦10,000 per year
B. Costs would increase by ₦10,000 per year
C. Costs would remain the same
D. Costs would increase by ₦20,000 per year

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: