POST UTME ESUT 2023 Commerce | Objective
Practice these randomly selected questions to test your readiness.
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?
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?
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?
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?
Question 5
A business is considering purchasing insurance to protect against losses due to natural disasters. Which type of insurance would be most appropriate?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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