POST UTME RSU 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering the introduction of a new product line. The product has a high potential for success, but it also has a high risk of failure. The company's management is divided on the issue, with some members advocating for the introduction of the product and others opposing it. The company's financial manager has estimated that the product will require an initial investment of ₦50 million and will generate revenue of ₦20 million per year for the first three years. After the first three years, the revenue is expected to increase by 10% per year. The company's cost of capital is 12% per year. What is the internal rate of return (IRR) of the product line?
A. 15%
B. 16%
C. 17%
D. 18%
Question 2
A company's marketing strategy is to increase sales by 20% in the next quarter. If the current sales are ₦1,500,000, what is the target sales figure?
A. ₦1,800,000
B. ₦1,600,000
C. ₦1,200,000
D. ₦1,000,000
Question 3
The following are characteristics of a marketing mix:
A. Product, Price, Place, and Promotion
B. Product, Price, Place, and People
C. Product, Price, Place, and Process
D. Product, Price, Place, and Physical Evidence
Question 4
A sole trader is considering the purchase of a new piece of equipment for his business. The equipment costs ₦200,000 and will last for 5 years. The sole trader expects to use the equipment for 8 hours a day, 5 days a week. The equipment will save him ₦500 per day in labor costs. What is the accounting rate of return (ARR) of the equipment?
A. 20%
B. 25%
C. 30%
D. 35%
Question 5
A company is considering two different production methods for its new product. Method A involves a high level of automation, while Method B involves a low level of automation. Which of the following is a potential advantage of Method A?
A. Increased labor costs
B. Reduced production costs
C. Improved product quality
D. Increased market share
Question 6
A company produces two products, A and B. 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 company has 8 hours of labor and 6 hours of machine time available, how many units of product A and product B should the company produce to maximize profit?
A. Product A: 4 units, Product B: 2 units
B. Product A: 2 units, Product B: 4 units
C. Product A: 3 units, Product B: 3 units
D. Product A: 1 unit, Product B: 5 units
Question 7
A firm is considering entering a new market. Which of the following is a potential risk associated with entering a new market?
A. Increased competition
B. Reduced production costs
C. Uncertainty about market demand
D. Improved brand recognition
Question 8
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦10000, find the optimal values of L and K that maximize the firm's profit.
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 100, K = 100
D. L = 50, K = 50
Question 9
A sole trader's business is registered with the Corporate Affairs Commission (CAC). What is the primary advantage of this registration?
A. Limited liability protection
B. Tax benefits and deductions
C. Access to government contracts and tenders
D. Increased credibility and reputation
Question 10
A firm's demand function is given by Q = 100 - 2P. If the firm's supply function is given by Q = 2P - 50, find the equilibrium price and quantity.
A. P = 25, Q = 50
B. P = 50, Q = 100
C. P = 75, Q = 150
D. P = 100, Q = 200
Question 11
A consumer protection law requires that all goods sold in a market must be labeled with their country of origin. A company sells goods from three different countries: Country A, Country B, and Country C. If the company sells 100 units of goods from Country A, 50 units from Country B, and 20 units from Country C, how many units of goods must be labeled with their country of origin?
A. 100 units
B. 150 units
C. 200 units
D. 250 units
Question 12
A firm's marketing mix is given by the 4 Ps: Product, Price, Place, and Promotion. Which of the following is NOT a part of the marketing mix?
A. Product
B. Price
C. Place
D. Profit
Question 13
A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which of the following is a potential advantage of Strategy A?
A. Increased market share
B. Reduced production costs
C. Improved brand recognition
D. Increased competition
Question 14
The following are characteristics of a sole trader business:
A. Unlimited liability, easy to set up, and high level of control
B. Limited liability, easy to set up, and high level of control
C. Unlimited liability, difficult to set up, and low level of control
D. Limited liability, difficult to set up, and low level of control
Question 15
A sole trader is considering the purchase of a new piece of equipment for his business. The equipment costs ₦200,000 and will last for 5 years. The sole trader expects to use the equipment for 8 hours a day, 5 days a week. The equipment will save him ₦500 per day in labor costs. What is the payback period of the equipment?
A. 2 years
B. 3 years
C. 4 years
D. 5 years

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