POST UTME UNIPORT 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two different warehousing options for its new product. Option A involves a high upfront cost of ₦200,000 but a low ongoing cost of ₦10,000 per year, while Option B involves a low upfront cost of ₦50,000 but a high ongoing cost of ₦20,000 per year. If the firm expects to store 10,000 units per year for 5 years, and the cost of each unit is ₦50, what is the total cost of each option, assuming a 20% tax rate?
A. ₦200,000
B. ₦50,000
C. ₦150,000
D. ₦100,000
Question 2
A firm has a capital of ₦2,000,000. If it issues 10% debentures, what is the amount of interest payable per annum?
A. ₦200,000
B. ₦400,000
C. ₦600,000
D. ₦800,000
Question 3
A company's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary goal of this strategy?
A. To increase market share
B. To reduce production costs
C. To create a unique selling proposition
D. To improve product quality
Question 4
A company's financial performance is measured by its return on investment (ROI). Which of the following is a factor that affects a company's ROI?
A. Interest rates
B. Inflation rates
C. Dividend yields
D. All of the above
Question 5
A firm is considering two different advertising strategies for its new product. Strategy A involves a high upfront cost of ₦1,000,000 but a low ongoing cost of ₦50,000 per year, while Strategy B involves a low upfront cost of ₦200,000 but a high ongoing cost of ₦100,000 per year. If the firm expects to sell 10,000 units per year for 5 years, and the selling price of each unit is ₦500, what is the total revenue generated by each strategy, assuming a 20% tax rate?
A. ₦2,500,000
B. ₦2,000,000
C. ₦1,500,000
D. ₦1,000,000
Question 6
A company's sole trader has a warehouse with a capacity of 10,000 units. The company's average daily sales are 200 units. If the company uses the first-in-first-out (FIFO) method of inventory valuation, what is the value of the inventory on hand at the end of the year?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 7
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to increase its output by 20%, what is the required increase in labor and capital?
A. 10% increase in labor and 10% increase in capital
B. 20% increase in labor and 20% increase in capital
C. 30% increase in labor and 30% increase in capital
D. 40% increase in labor and 40% increase in capital
Question 8
A company has a production capacity of 1000 units per day. If it operates for 5 days a week, what is the total production capacity for a week?
A. 5000
B. 10000
C. 20000
D. 50000
Question 9
A sole trader's business is registered under the _______________ Act, which provides for the registration of sole traders and their businesses.
A. Companies and Allied Matters Act
B. Business Registration Act
C. Sole Trader Registration Act
D. Business Incorporation Act
Question 10
A company's directors have a duty to _______________ the company's business and affairs with due care and diligence.
A. manage
B. conduct
C. supervise
D. oversee
Question 11
A firm's foreign trade involves importing goods from a country with a currency that is not the firm's local currency. The firm uses a forward exchange contract to hedge against exchange rate risk. If the exchange rate is 1 USD = 500 NGN and the firm expects the exchange rate to appreciate to 1 USD = 600 NGN in the future, what is the value of the forward contract?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 12
A warehouse has a storage capacity of 10,000 units. If 8,000 units are already stored, what is the remaining capacity?
A. 2,000 units
B. 5,000 units
C. 8,000 units
D. 10,000 units
Question 13
A company's financial statements include the balance sheet, income statement, and cash flow statement. Which of the following is a characteristic of a company's cash flow statement?
A. It shows the company's profitability
B. It shows the company's liquidity
C. It shows the company's solvency
D. It shows the company's cash inflows and outflows
Question 14
A company is considering two different production methods for its new product. Method A involves a high initial investment but low ongoing costs, while Method B involves a low initial investment but high ongoing costs. If the company expects to produce 10,000 units per year for 5 years, and the selling price of each unit is ₦500, what is the total revenue generated by each method, assuming a 20% tax rate?
A. ₦2,500,000
B. ₦2,000,000
C. ₦1,500,000
D. ₦1,000,000
Question 15
A company is considering two different transportation options for its new product. Option A involves a high upfront cost of ₦500,000 but a low ongoing cost of ₦20,000 per year, while Option B involves a low upfront cost of ₦100,000 but a high ongoing cost of ₦50,000 per year. If the company expects to transport 10,000 units per year for 5 years, and the cost of each unit is ₦100, what is the total cost of each option, assuming a 20% tax rate?
A. ₦500,000
B. ₦200,000
C. ₦300,000
D. ₦400,000

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