POST UTME VERITAS UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering outsourcing some of its operations to a third-party vendor. What type of risk is the company taking on by outsourcing its operations?
A. Operational risk
B. Strategic risk
C. Financial risk
D. Reputational risk
Question 2
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is likely to be
A. inelastic
B. elastic
C. unit elastic
D. perfectly inelastic
Question 3
A company is considering the introduction of a new product line. The product requires a significant investment in warehousing and stock control systems. Which of the following is a key consideration for the company?
A. The potential return on investment (ROI) of the new product line
B. The impact of the new product line on the company's existing supply chain
C. The potential disruption to the company's existing operations
D. The potential impact on the company's market share
Question 4
A company has the following budget constraint: 2X + 3Y = 12, where X is the number of units of good X produced and Y is the number of units of good Y produced. If the company wants to produce 4 units of good X, how many units of good Y can it produce?
A. 2
B. 3
C. 4
D. 5
Question 5
A company's risk management strategy involves the following steps: risk identification, risk assessment, and risk mitigation. Which of the following best describes the primary goal of the risk mitigation step?
A. To reduce the likelihood of a risk event
B. To increase the impact of a risk event
C. To transfer the risk to another party
D. To accept the risk
Question 6
A consumer is considering purchasing a product from a company that has a history of producing high-quality products. However, the consumer is also aware that the company has been involved in some controversies in the past. What type of risk is the consumer taking on by purchasing the product?
A. Financial risk
B. Reputational risk
C. Operational risk
D. Strategic risk
Question 7
A stock's beta is a measure of its
A. Volatility
B. Risk
C. Return
D. All of the above
Question 8
A company is considering the introduction of a new product line. The product requires a significant investment in warehousing and stock control systems. Which of the following is a key consideration for the company?
A. The potential return on investment (ROI) of the new product line
B. The impact of the new product line on the company's existing supply chain
C. The potential disruption to the company's existing operations
D. The potential impact on the company's market share
Question 9
A company is considering the introduction of a new product line. The product requires a significant investment in warehousing and stock control systems. Which of the following is a key consideration for the company?
A. The potential return on investment (ROI) of the new product line
B. The impact of the new product line on the company's existing supply chain
C. The potential disruption to the company's existing operations
D. The potential impact on the company's market share
Question 10
A firm specializes in producing a single product, which is a type of electronic device. The production process involves several stages, including design, prototyping, and manufacturing. If the firm decides to outsource the design stage to a third-party vendor, what type of risk is the firm taking on?
A. Operational risk
B. Strategic risk
C. Financial risk
D. Reputational risk
Question 11
A stock exchange is a marketplace where
A. Bonds are traded
B. Stocks are traded
C. Derivatives are traded
D. All of the above
Question 12
A company is considering the introduction of a new product line. The product requires a significant investment in warehousing and stock control systems. Which of the following is a key consideration for the company?
A. The potential return on investment (ROI) of the new product line
B. The impact of the new product line on the company's existing supply chain
C. The potential disruption to the company's existing operations
D. The potential impact on the company's market share
Question 13
A foreign trade agreement between two countries involves the exchange of goods and services. Which of the following best describes the primary benefit of this agreement?
A. Increased trade barriers
B. Reduced trade costs
C. Improved economic growth
D. Increased competition
Question 14
A sole trader is considering the expansion of their business. Which of the following is a key advantage of registering as a company?
A. Limited liability for the owner
B. Increased tax efficiency
C. Easier access to finance
D. Simplified accounting requirements
Question 15
A company's financial statement can be classified as
A. Balance sheet
B. Income statement
C. Cash flow statement
D. All of the above

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: