POST UTME RHEMA UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering launching a new product in the Nigerian market. What type of market research would be most appropriate for this purpose?
A. Primary research
B. Secondary research
C. Qualitative research
D. Quantitative research
Question 2
A bank's liquidity ratio is calculated as the ratio of its liquid assets to its total deposits. If a bank has ₦120,000 in liquid assets and ₦180,000 in total deposits, what is its liquidity ratio?
A. 0.67
B. 0.75
C. 0.83
D. 0.90
Question 3
A firm's insurance policy covers it against losses due to fire. Which of the following is a type of insurance policy?
A. Life insurance
B. Health insurance
C. Fire insurance
D. Liability insurance
Question 4
The Consumer Protection Act of 1999 provides for the establishment of the Consumer Protection Council. What is the primary function of the Consumer Protection Council?
A. To promote consumer awareness and education
B. To investigate consumer complaints and prosecute offenders
C. To regulate consumer goods and services
D. To provide compensation to consumers for damages suffered
Question 5
A company specializes in producing and selling bicycles. It has a warehouse with a storage capacity of 10,000 units. The company's production manager wants to store the bicycles in a way that minimizes the space used. If the bicycles are packed in boxes of 5 units each, what is the maximum number of boxes that can be stored in the warehouse?
A. 500
B. 1000
C. 2000
D. 5000
Question 6
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, with 7,000 units stored. If 2,000 more units are added to the warehouse, what percentage of the warehouse's capacity will be occupied?
A. 60%
B. 70%
C. 80%
D. 90%
Question 7
A company is considering launching a new advertising campaign to promote its product. The company has estimated that the campaign will cost ₦1,000,000 and is expected to generate an additional ₦2,000,000 in revenue. What is the expected return on investment (ROI) for the company?
A. 100%
B. 200%
C. 300%
D. 400%
Question 8
A sole trader is considering expanding his business to include a new product line. What type of business organization would be most suitable for this purpose?
A. Partnership
B. Limited liability company
C. Sole trader
D. Cooperative society
Question 9
A bank offers a loan of ₦5 million at an interest rate of 15% per annum, compounded quarterly. If the loan is repaid in 5 years, what is the total amount paid by the borrower?
A. ₦6,500,000
B. ₦7,000,000
C. ₦7,500,000
D. ₦8,000,000
Question 10
A consumer protection agency is investigating a complaint about a company's advertising practices. The company has advertised a product as '100% effective' in treating a certain medical condition. However, the agency has found that the product has only been tested on a small sample of 100 people, and the results showed that it was effective in 90% of the cases. What is the most appropriate conclusion that the agency can draw from this information?
A. The product is 100% effective in treating the medical condition.
B. The product is effective in 90% of the cases, but the sample size is too small to draw a conclusion.
C. The product is not effective in treating the medical condition.
D. The product is effective in treating the medical condition, but the company's advertising practices are misleading.
Question 11
A firm is considering two mutually exclusive projects. Project A has a 60% chance of success and a 40% chance of failure, with a payoff of ₦1,000,000 if it succeeds and a loss of ₦500,000 if it fails. Project B has a 70% chance of success and a 30% chance of failure, with a payoff of ₦1,500,000 if it succeeds and a loss of ₦200,000 if it fails. Which project should the firm choose?
A. Project A
B. Project B
C. Neither project
D. Both projects
Question 12
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 80% full, and the company receives a new shipment of 5,000 units. What is the new percentage of the warehouse that is full?
A. 60%
B. 70%
C. 80%
D. 90%
Question 13
A company is planning to launch a new product and has allocated ₦1,000,000 for advertising. The company has two advertising options: Option A, which costs ₦200,000 per week for 5 weeks, and Option B, which costs ₦300,000 per week for 3 weeks. Which option is more cost-effective?
A. Option A
B. Option B
C. Both options are equally cost-effective
D. Neither option is cost-effective
Question 14
A company is considering setting up a new production line to manufacture a new product. The production line will require an initial investment of ₦10 million and will generate an annual revenue of ₦5 million. However, the company expects the market demand for the product to decrease by 20% each year. What is the minimum number of years that the company must operate the production line to break even?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
Question 15
A company's foreign trade involves importing goods from a foreign country. Which of the following is a benefit of foreign trade?
A. Increased competition
B. Increased market share
C. Increased access to new markets
D. Increased costs

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