POST UTME ELIZADE UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's financial statements include a balance sheet, income statement, and cash flow statement. Which of the following is NOT a financial statement?
A. Balance sheet
B. Income statement
C. Cash flow statement
D. Statement of changes in equity
Question 2
A business is considering outsourcing its logistics operations to a third-party provider. What is the primary benefit of outsourcing logistics?
A. Reduced transportation costs
B. Improved delivery times
C. Enhanced customer satisfaction
D. Increased flexibility in supply chain management
Question 3
A bank has a reserve requirement of 10% and a cash reserve of ₦100,000. The bank's total deposits are ₦1,000,000. What is the bank's required reserve?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 4
A company is considering investing in a new project. The project has a high potential return on investment, but it also carries a high level of risk. What is the primary factor that the company should consider when making its decision?
A. Expected return on investment
B. Risk level of the project
C. Time required to complete the project
D. Cost of the project
Question 5
A sole trader's business is exposed to various risks, including market risk, credit risk, and operational risk. Which of the following is the most effective way to manage these risks?
A. Diversification of business activities
B. Insurance coverage for business assets
C. Hedging against market fluctuations
D. Risk avoidance through business closure
Question 6
A consumer has a utility function U(x, y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget is ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 0
D. x = 0, y = 15
Question 7
A company is considering two modes of transportation: road and rail. The cost of transporting goods by road is ₦500 per unit, while the cost of transporting goods by rail is ₦300 per unit. If the company expects to transport 10,000 units, what is the total cost of transportation by road?
A. ₦5,000,000
B. ₦4,500,000
C. ₦4,000,000
D. ₦3,500,000
Question 8
A business is considering investing in a new project with a potential return on investment (ROI) of 15%. However, the project also carries a risk of losing 10% of the initial investment. What is the expected return on investment (ROI) for this project?
A. 0.05
B. 0.1
C. 0.15
D. 0.2
Question 9
A company is considering using a new insurance policy to protect its business. The policy has a higher premium than the current policy, but it also provides a higher level of coverage. What is the primary factor that the company should consider when making its decision?
A. Cost of the new policy
B. Level of coverage provided by the new policy
C. Reliability of the new policy
D. All of the above
Question 10
A consumer is considering purchasing a product with a price of ₦1,500 and a discount of 10%. What is the final price of the product?
A. ₦1,350
B. ₦1,400
C. ₦1,450
D. ₦1,500
Question 11
A company's marketing mix includes product, price, promotion, and place. Which of the following is NOT a component of the marketing mix?
A. Product
B. Price
C. Promotion
D. Research and development
Question 12
A company has a cash balance of ₦500,000 and a bank overdraft of ₦200,000. The company's current liabilities are ₦800,000. What is the company's net current liability?
A. ₦100,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 13
A firm specializes in producing only one product. This specialization allows the firm to achieve economies of scale in production. However, it also exposes the firm to a higher risk of obsolescence. What is the name of this type of risk?
A. Specific Risk
B. Undiversifiable Risk
C. Systematic Risk
D. Cyclical Risk
Question 14
A company uses a transportation cost of ₦10 per unit for product X and ₦15 per unit for product Y. If the company produces 100 units of product X and 80 units of product Y, what is the total transportation cost?
A. ₦1,500
B. ₦2,000
C. ₦2,500
D. ₦3,000
Question 15
A company's financial statements are audited by an independent auditor. What is the primary purpose of the auditor's report?
A. To express an opinion on the company's financial position
B. To provide assurance on the accuracy of the financial statements
C. To identify material weaknesses in internal control
D. To recommend changes to the company's accounting policies

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