POST UTME IGBINEDION UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering implementing a just-in-time (JIT) inventory system. What is one of the primary benefits of JIT?
A. Reduced inventory costs.
B. Improved product quality.
C. Increased flexibility in production.
D. Reduced lead times.
Question 2
A company's financial statements are presented in a specific format to ensure that they are easy to understand. What is the primary purpose of financial statement presentation?
A. To provide a clear picture of the company's financial performance
B. To comply with accounting standards
C. To reduce the complexity of financial information
D. To increase the cost of financial reporting
Question 3
A consumer has a utility function given by U = 2A + 3B, where A and B are the quantities of two goods. The prices of the goods are P_A = 5 and P_B = 10. If the consumer's income is 100, what is the optimal consumption bundle?
A. A = 10, B = 5
B. A = 5, B = 10
C. A = 15, B = 3
D. A = 20, B = 2
Question 4
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
B. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
C. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y, but Country A has a lower opportunity cost for producing good X.
D. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y, but Country B has a lower opportunity cost for producing good Y.
Question 5
A company's financial statements are audited by an independent auditor to ensure that they are presented fairly and in accordance with accounting standards. What is the primary purpose of auditing financial statements?
A. To detect and prevent fraud
B. To ensure compliance with accounting standards
C. To verify the accuracy of financial information
D. To provide an opinion on the company's financial health
Question 6
A sole trader is a type of business ownership where one person owns and operates the business. What are the advantages of being a sole trader?
A. Easy to set up and operate
B. Limited liability
C. Flexibility in decision-making
D. Ability to raise capital from investors
Question 7
A firm's production function is given by Q = 100K^(1/2)L^(1/2), where Q is output, K is capital, and L is labor. If the firm's capital is increased by 20% and labor is increased by 15%, what is the new production level?
A. 120
B. 130
C. 140
D. 150
Question 8
A company's risk management strategy involves identifying and mitigating potential risks that could impact its operations. What is the primary goal of risk management?
A. To increase the company's revenue
B. To reduce the company's costs
C. To minimize the impact of potential risks
D. To eliminate all risks
Question 9
A consumer has a budget constraint of 100 and a preference for two goods, A and B. The prices of the goods are P_A = 5 and P_B = 10. If the consumer's utility function is given by U = 2A + 3B, what is the optimal consumption bundle?
A. A = 10, B = 5
B. A = 5, B = 10
C. A = 15, B = 3
D. A = 20, B = 2
Question 10
A country is considering imposing tariffs on imported goods. What is one of the potential effects of this policy?
A. Increased government revenue.
B. Reduced imports.
C. Increased prices for consumers.
D. Increased competition among domestic producers.
Question 11
A consumer purchases a product from a store, but upon returning home, finds that the product is defective. The consumer contacts the store and requests a refund. What type of protection is the consumer seeking?
A. Warranty protection
B. Consumer protection
C. Product liability
D. Return policy
Question 12
A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's current assets are ₦100 million and its current liabilities are ₦80 million, what is the bank's equity?
A. ₦10 million
B. ₦20 million
C. ₦30 million
D. ₦40 million
Question 13
A company's foreign trade involves the importation of raw materials from a foreign country. If the company uses a letter of credit (L/C) to finance the importation, what type of risk is the company most likely to be exposed to?
A. Commercial risk
B. Country risk
C. Transfer risk
D. Payment risk
Question 14
A company's marketing strategy involves creating a brand identity that differentiates it from its competitors. What is the primary goal of brand identity?
A. To increase sales revenue
B. To build customer loyalty
C. To create a unique brand image
D. To reduce marketing costs
Question 15
A warehouse manager wants to store 1000 units of inventory in a warehouse with a capacity of 2000 units. The manager wants to maintain a safety stock of 10% of the total inventory. What is the maximum number of units that can be stored in the warehouse?
A. 900
B. 1000
C. 1100
D. 1200

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