POST UTME IMS U 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). Which of the following is a consequence of this?
A. The business cannot be sued
B. The business cannot be taxed
C. The business cannot obtain a loan
D. The business cannot employ staff
Question 2
A bank offers a loan to a customer at an interest rate of 12% per annum. Which of the following is the formula for calculating the interest on the loan?
A. I = P \times R \times T
B. I = P \times R \times T \times 100
C. I = P \times R \times T \times 12
D. I = P \times R \times T \times 1000
Question 3
A company's sole trader has a business income of ₦1,500,000 and expenses of ₦800,000. What is the profit before tax?
A. ₦700,000
B. ₦600,000
C. ₦800,000
D. ₦900,000
Question 4
A firm's marketing mix consists of four Ps: product, price, promotion, and place. Which of the following is an example of a product-related decision?
A. Setting the price of a product
B. Deciding on the distribution channels for a product
C. Designing a product
D. Creating an advertisement for a product
Question 5
A company's sole trader has a business that specializes in providing courier services. The sole trader has a fleet of 15 vehicles, each with a capacity of 2 tons. The company charges a flat rate of ₦50,000 per delivery, regardless of the distance. However, the company also offers a discount of 10% for deliveries that are made within a 50km radius. If the company makes 20 deliveries within the 50km radius and 10 deliveries outside the 50km radius, what is the total revenue generated by the company?
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 6
A company purchases an insurance policy to protect against losses due to fire. Which of the following is a type of insurance policy that the company may have purchased?
A. Fire insurance
B. Liability insurance
C. Business interruption insurance
D. Professional indemnity insurance
Question 7
A company's marketing manager wants to increase sales by 15% within the next quarter. If the current sales are ₦1,500,000, what is the target sales figure?
A. ₦1,725,000
B. ₦1,575,000
C. ₦1,625,000
D. ₦1,725,000
Question 8
A sole trader has a business income of ₦1,200,000 and expenses of ₦600,000. What is the profit before tax?
A. ₦600,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 9
A firm's supply chain management involves the coordination of activities related to the flow of goods, services, and information from raw materials to end customers. Which of the following is an example of a supply chain management strategy?
A. Just-in-Time (JIT) inventory management
B. Total Quality Management (TQM)
C. Supply Chain Optimization
D. Global Sourcing
Question 10
A bank's financial statements are audited annually to ensure that they are presented fairly and in accordance with accounting standards. Which of the following is a key benefit of this audit?
A. To identify any material weaknesses in internal control
B. To ensure that the financial statements are presented fairly and in accordance with accounting standards
C. To provide assurance to stakeholders that the financial statements are reliable
D. To identify any opportunities for cost savings
Question 11
A firm's decision to invest in a new project is influenced by the opportunity cost of the resources required for the project. Which of the following is an example of an opportunity cost?
A. The cost of the resources required for the project
B. The revenue generated by the project
C. The opportunity cost of the resources required for the project
D. The cost of the project's failure
Question 12
A marketing manager wants to increase sales by 20% within the next quarter. If the current sales are ₦2,000,000, what is the target sales figure?
A. ₦2,400,000
B. ₦2,200,000
C. ₦2,600,000
D. ₦2,800,000
Question 13
A firm is considering two different production technologies: one that produces 10 units of output per unit of labor, and another that produces 20 units of output per unit of labor. If the firm has 100 units of labor available, and it wants to produce 200 units of output, which technology should it choose?
A. Technology 1
B. Technology 2
C. Both technologies
D. Neither technology
Question 14
A company's sole trader has a business that specializes in providing courier services. The sole trader has a fleet of 15 vehicles, each with a capacity of 2 tons. The company charges a flat rate of ₦50,000 per delivery, regardless of the distance. However, the company also offers a discount of 10% for deliveries that are made within a 50km radius. If the company makes 20 deliveries within the 50km radius and 10 deliveries outside the 50km radius, what is the total revenue generated by the company?
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 15
A consumer protection agency has been established to protect consumers from unfair business practices. Which of the following is a key power of this agency?
A. To investigate complaints from consumers
B. To prosecute businesses that engage in unfair practices
C. To regulate the prices of goods and services
D. To provide information to consumers about their rights

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