POST UTME IMS U 2019 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is considering whether to launch a new product in a new market. The new product has a high level of demand, but it also requires a significant investment in marketing and distribution. Which of the following marketing metrics would be most useful in evaluating the potential return on investment (ROI) of the new product launch?
Question 2
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, and the manager wants to add 5,000 new units to the inventory. What is the new storage capacity of the warehouse?
Question 3
A company is considering two business structures: a sole proprietorship and a partnership. Which structure is more suitable for a company with multiple owners?
Question 4
A firm's cash flow from operations is ₦1.2 billion, and its cash flow from investing activities is ₦600 million. What is the firm's net cash flow?
Question 5
A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm hires 2 units of labor and 3 units of capital, what is its total cost?
Question 6
A company's sole trader is considering expanding its business to include a new product line. The new product line has a higher profit margin, but it also requires a significant investment in new equipment and training. Which of the following financial ratios would be most useful in determining whether the company should invest in the new product line?
Question 7
A company is considering two marketing strategies: Strategy A involves a high initial investment but generates a steady stream of revenue over time, while Strategy B involves a low initial investment but generates a variable stream of revenue. Which strategy is more likely to be adopted by a company with a high risk tolerance?
Question 8
A bank offers a 5% interest rate on a 1-year fixed deposit. If a customer deposits ₦10,000, how much interest will the customer earn in 1 year?
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to produce 100 units of output, and it has 4 units of labor, how many units of capital does it need to produce this output?
Question 10
A company's insurance policy has a deductible of ₦5000. If it pays ₦15000 for a claim, what is the amount paid by the insurance company?
Question 11
A firm is considering two production processes. Process A requires an initial investment of ₦100,000 and generates a profit of ₦20,000 per year. Process B requires an initial investment of ₦150,000 and generates a profit of ₦30,000 per year. Which process has a higher net present value (NPV) if the discount rate is 10%?
Question 12
A firm is considering two different advertising strategies for its new product. Strategy A involves a higher budget but a more targeted approach, while Strategy B involves a lower budget but a more general approach. If the firm expects to sell 5,000 units per year for 3 years, and the market price of the product is ₦150 per unit, which strategy should the firm choose?
Question 13
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. What is the company's issued share capital?
Question 14
A transport company offers a 10% discount on a 1-year subscription to its logistics services. If a customer pays ₦10,000 for the subscription, how much will the customer pay after the discount?
Question 15
A bank is considering whether to offer a new credit card product to its customers. The new product has a higher interest rate than the bank's existing credit cards, but it also offers a higher credit limit. Which of the following financial metrics would be most useful in evaluating the profitability of the new credit card product?
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