POST UTME MOUNTAIN TOP UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's marketing strategy involves a mix of advertising, personal selling, and sales promotion. Which of the following is NOT a characteristic of the advertising mix?
A. Reach
B. Frequency
C. Personal Selling
D. Sales Promotion
Question 2
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 productivity. Which of the following is a benefit of specialization in production?
A. Increased competition in the market
B. Improved product quality
C. Reduced production costs
D. Enhanced customer satisfaction
Question 3
A company's financial statements are audited by an independent auditor. Which of the following is a benefit of having an independent auditor?
A. It increases the risk of losses for the company
B. It reduces the risk of losses for the company
C. It increases the accuracy of the financial statements
D. It reduces the accuracy of the financial statements
Question 4
A sole trader's business is insured against fire risk. The premium is 5% of the insured value. If the insured value is ₦1,000,000, what is the premium?
A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000
Question 5
A company is considering exporting its products to a foreign market. What type of trade would this be classified as?
A. Import Trade
B. Export Trade
C. Domestic Trade
D. International Trade
Question 6
A firm's foreign trade involves the importation of goods from another country. What is the term for the process of converting a firm's currency into the currency of the country from which the goods are being imported?
A. Export
B. Import
C. Foreign Exchange
D. Currency Conversion
Question 7
A firm is considering two different investment opportunities: a 5-year bond with a 6% annual return and a 10-year bond with a 7% annual return. Using the concept of time value of money, calculate the present value of each investment opportunity.
A. The present value of the 5-year bond is ₦10,000 and the present value of the 10-year bond is ₦20,000.
B. The present value of the 5-year bond is ₦15,000 and the present value of the 10-year bond is ₦30,000.
C. The present value of the 5-year bond is ₦20,000 and the present value of the 10-year bond is ₦40,000.
D. The present value of the 5-year bond is ₦25,000 and the present value of the 10-year bond is ₦50,000.
Question 8
A bank's cash management system involves the use of cash management techniques to minimize the need for cash. Which of the following is a cash management technique?
A. Just-in-Time (JIT) Inventory System
B. Zero-Balancing
C. Cash Budgeting
D. Accounts Payable Management
Question 9
A bank's return on equity (ROE) is calculated as net income divided by shareholder equity. If a bank's net income is ₦1.2 billion and shareholder equity is ₦8 billion, what is the bank's ROE?
A. 15%
B. 12%
C. 18%
D. 20%
Question 10
A company's marketing strategy involves creating a sense of urgency among its customers to purchase a product. This strategy is an example of which of the following?
A. Scarcity principle
B. Loss aversion principle
C. Social proof principle
D. Authority principle
Question 11
A consumer protection law requires that all goods sold in a market must have a minimum warranty period of 2 years. Which of the following is a consequence of this law?
A. Increased cost of production
B. Reduced sales volume
C. Improved consumer satisfaction
D. Increased competition
Question 12
A company purchases an insurance policy to protect against losses due to natural disasters. The policy has a deductible of ₦100,000. Which of the following is a benefit of having a deductible?
A. It reduces the premium paid by the company
B. It increases the risk of losses for the company
C. It reduces the risk of losses for the company
D. It increases the premium paid by the company
Question 13
A foreign trade agreement between two countries involves the exchange of goods and services. If a country exports goods worth ₦1.5 billion and imports goods worth ₦2.5 billion, what is the trade deficit?
A. ₦1 billion
B. ₦1.5 billion
C. ₦2.5 billion
D. ₦3 billion
Question 14
A company's warehousing and stock control system involves the use of a first-in-first-out (FIFO) inventory system. What is the advantage of using a FIFO system?
A. It reduces inventory costs
B. It minimizes stockouts
C. It ensures that the oldest items are sold first
D. It maximizes profits
Question 15
A firm is considering the use of just-in-time (JIT) inventory management system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Enhanced customer satisfaction

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