POST UTME NILE UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering exporting its products to a foreign market. However, the firm is concerned about the potential risks associated with international trade, including political instability, currency fluctuations, and cultural differences. Which of the following strategies would best mitigate these risks?
A. Diversification
B. Risk Management
C. Market Research
D. Export Insurance
Question 2
A firm is considering entering a new market. However, the firm is concerned about the potential risks associated with market entry, including cultural differences, language barriers, and regulatory requirements. Which of the following strategies would best mitigate these risks?
A. Market Research
B. Risk Management
C. Strategic Planning
D. Export Insurance
Question 3
A company exports 10,000 units of a product to a foreign country. If the product sells for ₦100 per unit in the foreign market, and the exchange rate is 1 USD = ₦200, what is the total value of the export in USD?
A. ₦1,000,000
B. ₦2,000,000
C. ₦5,000,000
D. ₦10,000,000
Question 4
A bank has a reserve requirement of 10% and a cash reserve of ₦100,000. If the bank's deposits are ₦1,000,000, what is the maximum amount of loans the bank can make?
A. ₦900,000
B. ₦900,000
C. ₦900,000
D. ₦900,000
Question 5
A sole trader's business has a profit of ₦200,000. If the trader's tax rate is 20%, and the trader's personal income tax is ₦50,000, what is the trader's net profit?
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 6
A company's marketing strategy involves creating a new product line to target a specific demographic. The product line is expected to generate a revenue of ₦1.2 billion in the first year. However, the company's financial analysts have estimated that the production costs will be ₦800 million. If the company's profit margin is 25%, what is the expected profit from the new product line?
A. ₦200 million
B. ₦250 million
C. ₦300 million
D. ₦350 million
Question 7
A company's marketing strategy involves creating a new product line to target a specific demographic. The product line is expected to generate a revenue of ₦1.2 billion in the first year. However, the company's financial analysts have estimated that the production costs will be ₦800 million. If the company's profit margin is 25%, what is the expected profit from the new product line?
A. ₦200 million
B. ₦250 million
C. ₦300 million
D. ₦350 million
Question 8
A sole trader, Mr. A, has a business that generates an annual revenue of ₦5 million. His business expenses include rent (₦1.2 million), salaries (₦800,000), and miscellaneous expenses (₦400,000). If Mr. A's business is taxed at a rate of 20%, what is his taxable income?
A. ₦1.2 million
B. ₦1.6 million
C. ₦2 million
D. ₦2.4 million
Question 9
A company's financial statements are audited by a
A. Certified Public Accountant (CPA)
B. Chartered Accountant (CA)
C. Chartered Institute of Bankers (CIB)
D. Institute of Chartered Accountants of Nigeria (ICAN)
Question 10
A firm uses the economic order quantity (EOQ) model to determine its inventory order quantity. If the firm's demand rate is 1,000 units per month, the ordering cost is ₦100 per order, and the holding cost is ₦5 per unit per month, what is the optimal order quantity?
A. 500 units
B. 750 units
C. 1,000 units
D. 1,250 units
Question 11
A company's marketing strategy involves creating a new product line to target a specific demographic. However, the production costs are high, and the company is concerned about the potential loss if the product does not sell well. Which of the following insurance products would best mitigate this risk?
A. Product Liability Insurance
B. Business Interruption Insurance
C. Key Person Insurance
D. Contingency Insurance
Question 12
A company has a total of 10,000 shares outstanding, with a par value of ₦10 each. If the company issues 2,000 new shares at a premium of ₦20 per share, what is the total amount of additional capital raised?
A. ₦40,000
B. ₦80,000
C. ₦120,000
D. ₦160,000
Question 13
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 150 units, and the stock level is currently at 8,000 units, what is the minimum number of days the company can sustain its sales rate without replenishing stock?
A. 14 days
B. 21 days
C. 28 days
D. 35 days
Question 14
A company's articles of association can be amended by a
A. Simple Majority
B. Two-Thirds Majority
C. Special Resolution
D. Ordinary Resolution
Question 15
A company's marketing strategy involves creating a new product line to target a specific demographic. The product line is expected to generate a revenue of ₦1.2 billion in the first year. However, the company's financial analysts have estimated that the production costs will be ₦800 million. If the company's profit margin is 25%, what is the expected profit from the new product line?
A. ₦200 million
B. ₦250 million
C. ₦300 million
D. ₦350 million

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