POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2017 Commerce | Objective

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Question 1 View Details
A firm specializes in producing a single product. Which of the following is a characteristic of specialization?
A. Economies of scale
B. Increased competition
Correct C. Reduced production costs
D. Improved product quality

Correct Answer: C

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Question 2 View Details
A company uses the just-in-time (JIT) inventory system. What is the primary advantage of JIT?
Correct A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction

Correct Answer: A

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Question 3 View Details
A firm is considering the use of a warehouse management system (WMS). Which of the following is a benefit of a WMS?
A. Improved inventory accuracy
B. Increased storage capacity
Correct C. Enhanced supply chain visibility
D. Reduced labor costs

Correct Answer: C

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Question 4 View Details
A company is considering the use of a third-party logistics (3PL) provider. Which of the following is a benefit of 3PL?
A. Reduced transportation costs
B. Improved delivery times
Correct C. Enhanced supply chain flexibility
D. Increased storage capacity

Correct Answer: C

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Question 5 View Details
A firm is considering the use of a total quality management (TQM) approach. Which of the following is a key principle of TQM?
Correct A. Continuous improvement
B. Employee empowerment
C. Customer satisfaction
D. Reduced costs

Correct Answer: A

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Question 6 View Details
In a sole trader business, what is the primary advantage of maintaining a separate bank account for business transactions?
Correct A. Easy accounting and tax compliance
B. Improved cash flow management
C. Enhanced business credibility
D. Reduced business risk

Correct Answer: A

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Question 7 View Details
A company has a warehouse with a capacity to store 1000 units of goods. If the warehouse is currently 75% full, how many units of goods can still be stored?
Correct A. 500
B. 750
C. 1000
D. 1250

Correct Answer: A

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Question 8 View Details
A bank offers a 5% interest rate on a savings account. If a customer deposits ₦1000, how much interest will they earn in one year?
Correct A. ₦50
B. ₦50.25
C. ₦50.50
D. ₦50.75

Correct Answer: A

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Question 9 View Details
A company uses the just-in-time (JIT) inventory system. What is the primary benefit of this system?
A. Reduced inventory costs
B. Improved product quality
C. Enhanced customer satisfaction
Correct D. Increased supply chain efficiency

Correct Answer: D

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Question 10 View Details
A firm uses the weighted average cost of capital (WACC) to determine its cost of capital. What is the primary component of WACC?
Correct A. Debt component
B. Equity component
C. Preferred stock component
D. Retained earnings component

Correct Answer: A

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Question 11 View Details
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied by firms will
A. increase
Correct B. decrease
C. remain constant
D. move in the opposite direction

Correct Answer: B

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Question 12 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
B. 36
Correct C. 48
D. 60

Correct Answer: C

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Question 13 View Details
A consumer has a budget of ₦1000 and a preference for two goods, A and B, with prices of ₦200 and ₦300, respectively. If the consumer's indifference curves are convex to the origin, what is the maximum amount of good A that the consumer can purchase?
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 14 View Details
A firm's cost function is given by C = 2L + 3K. If the firm's current labor and capital inputs are L = 10 and K = 5, respectively, what is the firm's current total cost?
A. 50
B. 60
Correct C. 70
D. 80

Correct Answer: C

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Question 15 View Details
A consumer has a budget of ₦2000 and a preference for two goods, A and B, with prices of ₦400 and ₦600, respectively. If the consumer's indifference curves are convex to the origin, what is the maximum amount of good A that the consumer can purchase?
A. 3
B. 4
Correct C. 5
D. 6

Correct Answer: C

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Question 16 View Details
The Consumer Protection Act of 1999 provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. Section 2 of the Act defines a consumer as a person who purchases goods or services for personal use.
B. Section 3 of the Act provides for the establishment of a Consumer Protection Council.
Correct C. Section 4 of the Act prohibits unfair trade practices.
D. Section 5 of the Act provides for the right of consumers to seek redress in court.

Correct Answer: C

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Question 17 View Details
A company has a sole trader as its business unit. Which of the following is a characteristic of a sole trader?
Correct A. The business is owned by one person.
B. The business is owned by multiple people.
C. The business is a partnership.
D. The business is a limited liability company.

Correct Answer: A

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Question 18 View Details
A bank has a loan of ₦1,000,000 at an interest rate of 10% per annum. How much interest will the bank pay at the end of the year?
A. ₦100,000
Correct B. ₦110,000
C. ₦120,000
D. ₦130,000

Correct Answer: B

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Question 19 View Details
A company has a production process that involves the use of raw materials. Which of the following is a benefit of specialization in the production process?
Correct A. Increased efficiency
B. Reduced costs
C. Improved quality
D. Increased competition

Correct Answer: A

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Question 20 View Details
A company uses a transportation mode that involves the use of trucks. Which of the following is a characteristic of the transportation mode?
A. High speed
Correct B. High capacity
C. Low cost
D. High flexibility

Correct Answer: B

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Question 21 View Details
In a sole trade business, the owner's capital is represented by the accounting equation: Assets = Capital + Liabilities. If the owner's capital is ₦250,000 and the liabilities are ₦120,000, what is the value of assets?
Correct A. ₦370,000
B. ₦250,000
C. ₦120,000
D. ₦350,000

Correct Answer: A

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Question 22 View Details
A company's profit is calculated as Revenue - Cost of Goods Sold - Operating Expenses. If the revenue is ₦1,500,000, the cost of goods sold is ₦900,000, and the operating expenses are ₦200,000, what is the company's profit?
Correct A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000

Correct Answer: A

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Question 23 View Details
A foreign trade transaction involves the exchange of goods or services between two or more countries. What is the primary benefit of foreign trade?
A. Increased competition
Correct B. Improved economic growth
C. Enhanced technological advancements
D. Increased employment opportunities

Correct Answer: B

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Question 24 View Details
A warehouse is a storage facility used to hold goods until they are sold or transported to another location. What is the primary function of a warehouse?
A. To manufacture goods
Correct B. To store goods
C. To transport goods
D. To sell goods

Correct Answer: B

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Question 25 View Details
A bank is a financial institution that provides various financial services to its customers. What is the primary function of a bank?
A. To provide loans
Correct B. To accept deposits
C. To facilitate foreign exchange
D. To provide investment advice

Correct Answer: B

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