POST UTME REDEEMERS UNIVERSITY 2025 Commerce | Objective

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Question 1 View Details
In a sole trader business, what is the primary advantage of using a cash basis of accounting?
Correct A. Easier tax compliance
B. Reduced accounting costs
C. Improved cash flow management
D. Enhanced financial reporting

Correct Answer: A

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Question 2 View Details
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a primary objective of this strategy?
A. To increase brand awareness
B. To enhance customer loyalty
Correct C. To reduce production costs
D. To improve product quality

Correct Answer: C

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Question 3 View Details
A consumer protection agency has received complaints about a company's misleading advertising. Which of the following is a possible consequence of this action?
Correct A. The company may face a fine
B. The company may be required to change its advertising strategy
C. The company may be forced to recall its products
D. The company may be granted a license to operate

Correct Answer: A

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Question 4 View Details
A production manager is considering outsourcing a component of a product. Which of the following is a key factor in this decision?
Correct A. The cost of production
B. The quality of the component
C. The availability of raw materials
D. The company's reputation

Correct Answer: A

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Question 5 View Details
A company is considering a new marketing strategy that involves social media advertising. Which of the following is a potential benefit of this strategy?
Correct A. Increased brand awareness
B. Improved customer engagement
C. Enhanced product quality
D. Reduced production costs

Correct Answer: A

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Question 6 View Details
A company's marketing strategy involves creating a sense of urgency among potential customers. This approach is an example of which of the following?
Correct A. Scarcity principle
B. Loss aversion principle
C. Endowment effect principle
D. Sunk cost fallacy

Correct Answer: A

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Question 7 View Details
A firm's warehousing and stock control system involves the use of a just-in-time inventory management approach. This approach is characterized by which of the following?
Correct A. High inventory turnover rate
B. Low inventory turnover rate
C. High storage costs
D. Low storage costs

Correct Answer: A

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Question 8 View Details
A consumer protection agency has received a complaint from a customer who was charged an excessive interest rate on a loan. The agency's investigation reveals that the lender had engaged in predatory lending practices. Which of the following laws or regulations is most likely to be relevant in this case?
Correct A. Truth in Lending Act
B. Fair Credit Reporting Act
C. Equal Credit Opportunity Act
D. Fair Debt Collection Practices Act

Correct Answer: A

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Question 9 View Details
A company's financial statements show a significant increase in accounts receivable over the past quarter. However, the company's cash flow statement shows a decrease in cash from operations. Which of the following is the most likely explanation for this discrepancy?
A. The company has implemented a new accounting policy
Correct B. The company has experienced a delay in collecting accounts receivable
C. The company has invested in new equipment
D. The company has paid off debt

Correct Answer: B

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Question 10 View Details
A firm's marketing strategy involves creating a sense of exclusivity among its target market. This approach is an example of which of the following?
A. Scarcity principle
Correct B. Exclusivity principle
C. Social proof principle
D. Authority principle

Correct Answer: B

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Question 11 View Details
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the implication of this on the business?
A. The business is not liable for any debts incurred.
Correct B. The business is not entitled to limited liability.
C. The business is not required to file annual returns.
D. The business is not eligible for tax deductions.

Correct Answer: B

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Question 12 View Details
A company is registered with the Corporate Affairs Commission (CAC) but has not commenced business. What is the implication of this on the company?
A. The company is not liable for any debts incurred.
B. The company is not entitled to limited liability.
C. The company is not required to file annual returns.
Correct D. The company is not eligible for tax deductions.

Correct Answer: D

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Question 13 View Details
A foreign company wants to establish a subsidiary in Nigeria. What is the first step the company should take?
Correct A. Register the subsidiary with the Corporate Affairs Commission (CAC).
B. Obtain a business permit from the Nigerian Investment Promotion Commission (NIPC).
C. Apply for a tax clearance certificate from the Federal Inland Revenue Service (FIRS).
D. Notify the Nigerian Stock Exchange (NSE) of the intention to establish a subsidiary.

Correct Answer: A

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Question 14 View Details
A company is involved in the production of textiles. What is the advantage of specialization in this industry?
A. Increased efficiency in production.
B. Reduced costs of production.
C. Improved quality of products.
Correct D. Enhanced competitiveness in the market.

Correct Answer: D

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Question 15 View Details
A consumer is purchasing a product online. What is the responsibility of the consumer in this transaction?
A. To verify the authenticity of the product.
B. To check the product's warranty.
C. To ensure the product meets the required standards.
Correct D. To read and understand the terms and conditions of the sale.

Correct Answer: D

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Question 16 View Details
A company is considering the implementation of a just-in-time (JIT) inventory system. Which of the following is a primary advantage of JIT?
A. Reduced inventory costs
B. Improved product quality
Correct C. Increased flexibility in production
D. Enhanced customer service

Correct Answer: C

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Question 17 View Details
A sole trader is considering the purchase of a new piece of equipment for their business. The equipment costs ₦150,000 and is expected to last for 5 years. What is the annual depreciation of the equipment using the straight-line method?
A. ₦30,000
Correct B. ₦25,000
C. ₦20,000
D. ₦15,000

Correct Answer: B

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Question 18 View Details
A company is considering the implementation of a new marketing strategy. The strategy involves the use of social media to promote the company's products. Which of the following is a primary advantage of using social media for marketing?
A. Increased brand awareness
Correct B. Improved customer engagement
C. Enhanced product visibility
D. Reduced marketing costs

Correct Answer: B

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Question 19 View Details
A company is considering the purchase of a new warehouse. The warehouse costs ₦500,000 and has a capacity of 10,000 square meters. What is the cost per square meter of the warehouse?
A. ₦50
Correct B. ₦60
C. ₦70
D. ₦80

Correct Answer: B

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Question 20 View Details
A company is considering the implementation of a new insurance policy. The policy costs ₦100,000 per year and provides coverage for up to ₦500,000 in case of loss. What is the premium rate of the policy?
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 21 View Details
A firm specializes in producing two goods, X and Y, using two inputs, labor (L) and capital (K). The production functions for X and Y are given by the following equations:
A. The firm will produce more of good X if it increases its labor input.
B. The firm will produce more of good Y if it increases its capital input.
C. The firm will produce more of good X if it increases its capital input.
Correct D. The firm will produce more of good Y if it increases its labor input.

Correct Answer: D

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Question 22 View Details
A bank's balance sheet is given by the following equation:
Correct A. The bank's equity is equal to its assets minus its liabilities.
B. The bank's assets are equal to its liabilities plus its equity.
C. The bank's liabilities are equal to its assets minus its equity.
D. The bank's equity is equal to its liabilities minus its assets.

Correct Answer: A

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Question 23 View Details
A firm's cost function is given by the following equation:
A. The firm's cost function is a linear function of output.
Correct B. The firm's cost function is a quadratic function of output.
C. The firm's cost function is a cubic function of output.
D. The firm's cost function is a logarithmic function of output.

Correct Answer: B

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Question 24 View Details
A country's trade balance is given by the following equation:
Correct A. The country's trade balance is equal to its exports minus its imports.
B. The country's trade balance is equal to its imports minus its exports.
C. The country's trade balance is equal to its GDP minus its imports.
D. The country's trade balance is equal to its GDP minus its exports.

Correct Answer: A

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Question 25 View Details
A firm's revenue function is given by the following equation:
A. The firm's revenue function is a linear function of output.
Correct B. The firm's revenue function is a quadratic function of output.
C. The firm's revenue function is a cubic function of output.
D. The firm's revenue function is a logarithmic function of output.

Correct Answer: B

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