POST UTME ESUT 2023 Commerce | Objective

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Question 1
A consumer has a budget of ₦10,000 and is considering two different products: Product A costs ₦5,000 and Product B costs ₦8,000. If the consumer buys Product A, they will have ₦5,000 left over. If they buy Product B, they will have ₦2,000 left over. What is the opportunity cost of buying Product B?
A. ₦2,000
B. ₦5,000
C. ₦8,000
D. ₦10,000
Question 2
A firm has a production function Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital invested. If the firm's current production level is 10 units, and it wants to increase production by 15%, what is the new level of capital investment required?
A. 81
B. 100
C. 121
D. 144
Question 3
A company in Nigeria imports goods from a foreign country. The goods are subject to customs duties and other taxes. What is the term for the total amount of customs duties and taxes paid on the imported goods?
A. Tariff
B. Duty
C. Tax
D. Customs Value
Question 4
A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's assets increase by 10% and its liabilities increase by 5%, what is the percentage increase in equity?
A. 2.5%
B. 5%
C. 7.5%
D. 10%
Question 5
A business is considering purchasing insurance to protect against losses due to natural disasters. Which type of insurance would be most appropriate?
A. Liability insurance
B. Property insurance
C. Business interruption insurance
D. Workers' compensation insurance
Question 6
A sole trader is considering the purchase of a new piece of equipment for their business. What is the primary advantage of leasing the equipment?
A. Lower upfront costs
B. Increased tax benefits
C. Improved cash flow
D. Reduced maintenance costs
Question 7
A company is considering a new marketing strategy that involves offering a discount to customers who purchase a product online. The discount is 10% off the original price, and the company expects to sell 1000 units of the product online within the next month. If the original price of the product is ₦500, what is the total revenue the company will generate from online sales?
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 8
A company is considering the introduction of a new product line. Which of the following is a key consideration in the decision-making process?
A. Market demand and competition
B. Production costs and supply chain management
C. Marketing and sales strategies
D. All of the above
Question 9
A company's warehouse is designed to store a large quantity of goods. If the company uses a first-in-first-out (FIFO) inventory system, which of the following is true?
A. The oldest items are sold first
B. The newest items are sold first
C. The items are sold in the order they are received
D. The items are sold randomly
Question 10
A company has a production process that involves mixing two chemicals together. The company wants to minimize the cost of production while ensuring that the product meets the required quality standards. What is the most appropriate production method?
A. Batch production
B. Mass production
C. Continuous production
D. Flexible production
Question 11
A firm's production process involves the following stages: raw material procurement, production, packaging, and distribution. If the firm wants to reduce its production costs, which of the following production strategies is most likely to be effective?
A. Mass production
B. Batch production
C. Job production
D. Flexible manufacturing system
Question 12
A company is considering investing in a new project that has a payback period of 5 years. If the company's cost of capital is 12%, what is the net present value (NPV) of the project?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 13
A company is considering investing in a new project that has a net present value (NPV) of ₦1,500,000. If the cost of capital is 10%, what is the internal rate of return (IRR) of the project?
A. 15%
B. 12%
C. 10%
D. 8%
Question 14
A consumer protection agency has been established to regulate the activities of businesses in a particular industry. Which of the following is a key responsibility of this agency?
A. To ensure that businesses comply with all relevant laws and regulations
B. To protect consumers from unfair business practices
C. To promote fair competition among businesses
D. To provide training and education to consumers on how to make informed purchasing decisions
Question 15
A firm is considering two different modes of transportation to ship its goods: by air and by sea. The cost of shipping by air is ₦50,000 per ton, while the cost of shipping by sea is ₦30,000 per ton. If the firm needs to ship 10 tons of goods, what is the total cost of shipping by air?
A. ₦500,000
B. ₦300,000
C. ₦400,000
D. ₦600,000

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