POST UTME FUTO 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a sole trading business, the owner's personal and business finances are not separated. What is the primary advantage of this arrangement?
A. Separation of personal and business finances
B. Easy to set up and maintain
C. No need for accounting records
D. Increased tax benefits
Question 2
A company's foreign exchange exposure can be managed through which of the following methods?
A. Hedging
B. Speculation
C. Diversification
D. Risk Aversion
Question 3
A warehouse has a capacity of 10,000 units. If 8,000 units are already stored, what is the percentage of the warehouse that is occupied?
A. 60%
B. 70%
C. 80%
D. 90%
Question 4
A risk management strategy involves diversifying investments across different asset classes. What is the primary benefit of this approach?
A. Reduced risk exposure
B. Increased potential returns
C. Improved liquidity
D. Enhanced creditworthiness
Question 5
A company is considering exporting its product to a foreign market. What is the primary advantage of exporting?
A. Increased market share
B. Improved brand recognition
C. Reduced production costs
D. Access to new markets and customers
Question 6
A bank offers a credit card with an annual interest rate of 20%. If the customer's outstanding balance is ₦10,000, how much interest will be charged in the first year?
A. ₦2,000
B. ₦2,500
C. ₦3,000
D. ₦3,500
Question 7
The concept of 'just in time' inventory system is most closely related to which of the following principles of inventory management?
A. Economic Order Quantity (EOQ)
B. Just in Time (JIT)
C. Materials Requirements Planning (MRP)
D. Vendor Managed Inventory (VMI)
Question 8
A bank's risk management strategy involves diversification of assets to minimize risk. Which of the following is a type of diversification?
A. Horizontal diversification
B. Vertical diversification
C. Concentration risk
D. Liquidity risk
Question 9
A company issues a prospectus to raise funds for its business. What is the primary purpose of the prospectus?
A. To provide information about the company's financial performance
B. To outline the company's business objectives and strategies
C. To disclose the company's financial risks and liabilities
D. To solicit funds from investors
Question 10
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary benefit of a USP?
A. Increased market share
B. Improved brand recognition
C. Enhanced customer loyalty
D. Reduced production costs
Question 11
A firm is considering two investment projects. Project A has a 10% chance of earning ₦100,000 and a 90% chance of earning ₦0. Project B has a 20% chance of earning ₦50,000 and an 80% chance of earning ₦0. Which project has a higher expected return?
A. Project A
B. Project B
C. Project A and Project B are equal
D. Neither project has a higher expected return
Question 12
A bank offers a 5-year fixed deposit account with an interest rate of 12% per annum compounded annually. If the principal amount is ₦100,000, what is the amount at the end of the 5-year period?
A. ₦163,922.41
B. ₦164,922.41
C. ₦165,922.41
D. ₦166,922.41
Question 13
A company has a production capacity of 10,000 units per month. If the demand for the product is 12,000 units per month, what is the degree of production specialization?
A. 0.8
B. 1.2
C. 1.5
D. 2.0
Question 14
A firm's financial statements are prepared in accordance with 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 reduce the cost of financial reporting
D. To increase the complexity of financial reporting
Question 15
A sole trading business has a profit of ₦100,000. If the business owner wants to distribute the profit equally among the employees, what is the amount each employee will receive?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000

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