POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a warehouse with a capacity of 10,000 units. If the current stock level is 8,000 units and the daily demand is 200 units, what is the maximum number of days the company can maintain the current stock level without reordering?
A. 30 days
B. 40 days
C. 50 days
D. 60 days
Question 2
A country's trade balance is given by the equation: TB = X - M, where TB is the trade balance, X is the value of exports, and M is the value of imports. If the value of exports is 100 billion and the value of imports is 120 billion, what is the trade balance?
A. -20 billion
B. 20 billion
C. 40 billion
D. 60 billion
Question 3
A firm specializes in producing two products, A and B. The production process for product A requires 2 hours of labor and 1 hour of machine time, while product B requires 1 hour of labor and 2 hours of machine time. If the firm has 8 hours of labor and 6 hours of machine time available, what is the optimal production plan?
A. Produce 4 units of A and 2 units of B
B. Produce 2 units of A and 4 units of B
C. Produce 6 units of A and 0 units of B
D. Produce 0 units of A and 6 units of B
Question 4
A company is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased revenue
B. Reduced competition
C. Improved brand recognition
D. Access to new markets
Question 5
A company is considering two different transportation modes for its products. Mode A involves a high fixed cost but a low variable cost, while Mode B involves a low fixed cost but a high variable cost. If the company expects to transport 10,000 units per year for 5 years, which mode should it choose if it wants to minimize its total transportation costs?
A. Mode A
B. Mode B
C. Both modes are equally cost-effective
D. More information is needed to make a decision
Question 6
A company's marketing budget is ₦1,000,000. If the company allocates 30% of the budget to advertising, how much is allocated to advertising?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 7
A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following is a type of financial intermediary?
A. Commercial bank
B. Investment bank
C. Central bank
D. Merchant bank
Question 8
A consumer protection law that prohibits false or misleading advertising is an example of which of the following types of laws?
A. Administrative law
B. Civil law
C. Criminal law
D. Regulatory law
Question 9
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: Open Market Operations (OMO), Reserve Requirements, and the Discount Rate. Which of the following is NOT a tool used by the CBN to control inflation?
A. Fiscal Policy
B. Monetary Policy
C. Supply-Side Policy
D. Demand-Side Policy
Question 10
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 market competitiveness
Question 11
A sole trade business has a fixed cost of ₦50,000 and a variable cost of ₦20 per unit produced. If the selling price is ₦30 per unit, what is the break-even point in terms of the number of units produced?
A. 1,000 units
B. 2,000 units
C. 3,000 units
D. 4,000 units
Question 12
The concept of specialization in production refers to the process by which a firm focuses on producing a specific product or service, thereby increasing its efficiency and reducing costs. Which of the following is a benefit of specialization in production?
A. Increased competition
B. Improved product quality
C. Reduced production costs
D. Increased market share
Question 13
In a sole trade business, what is the primary advantage of adopting a specialized production process?
A. Increased efficiency
B. Reduced labor costs
C. Improved product quality
D. Enhanced market competitiveness
Question 14
A consumer is considering purchasing a product from a retailer. The product costs ₦200 and the retailer offers a 20% discount. What is the final price of the product?
A. ₦160
B. ₦180
C. ₦200
D. ₦220
Question 15
A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.
A. The owner's personal assets are protected from business debts.
B. The owner's personal assets are liable for business debts.
C. The business is not considered a separate entity from its owner.
D. The owner's personal assets are not affected by business debts.

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: