POST UTME WELLSPRING UNIVERSITY 2017 Commerce | Objective

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Question 1
In a just-in-time inventory system, what is the primary goal of the reorder point?
Correct A. To minimize inventory costs
B. To maximize stock levels
C. To ensure timely delivery of goods
D. To reduce lead times

Correct Answer: A

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Question 2
A company has a warehouse with a capacity of 10,000 units. If the current stock level is 8,000 units and the daily demand is 200 units, what is the reorder point?
A. 6,000 units
Correct B. 7,000 units
C. 8,000 units
D. 9,000 units

Correct Answer: B

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Question 3
A business owner wants to insure his store against theft. Which type of insurance policy would be most suitable?
A. Fire insurance
Correct B. Theft insurance
C. Liability insurance
D. Business interruption insurance

Correct Answer: B

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Question 4
A company has a cash reserve of ₦500,000 and wants to invest in a bank account that earns an interest rate of 5% per annum. What will be the future value of the investment after 2 years?
A. ₦550,000
B. ₦555,000
Correct C. ₦560,000
D. ₦565,000

Correct Answer: C

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Question 5
A sole trader has a business income of ₦1,000,000 and expenses of ₦800,000. What is the profit before tax?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 6
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. What is the opportunity cost of producing a good?
Correct A. The value of the good in terms of other goods
B. The time it takes to produce the good
C. The cost of producing the good
D. The quantity of the good produced

Correct Answer: A

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Question 7
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's labor and capital inputs are 4 and 9 respectively, what is the firm's output?
A. 10
B. 12
Correct C. 15
D. 20

Correct Answer: C

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Question 8
A country's trade balance is given by the equation TB = X - M, where X is the value of exports and M is the value of imports. If the country's exports are 100 billion and its imports are 80 billion, what is the country's trade balance?
Correct A. 20 billion
B. 30 billion
C. 40 billion
D. 50 billion

Correct Answer: A

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Question 9
A firm's demand function is given by Q = 100 - 2P. If the firm's price is 20, what is the firm's quantity demanded?
A. 40
Correct B. 50
C. 60
D. 70

Correct Answer: B

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Question 10
A country's GDP is given by the equation GDP = C + I + G + (X - M). If the country's consumption is 500 billion, its investment is 200 billion, its government spending is 300 billion, its exports are 100 billion, and its imports are 80 billion, what is the country's GDP?
A. 1.2 trillion
B. 1.3 trillion
Correct C. 1.4 trillion
D. 1.5 trillion

Correct Answer: C

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Question 11
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is a key advantage of using a mix of these strategies?
A. Increased brand awareness
B. Improved customer engagement
Correct C. Enhanced product differentiation
D. Better return on investment

Correct Answer: C

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Question 12
A firm's financial statements show a significant increase in revenue but a decrease in profit. What could be the reason for this discrepancy?
Correct A. Increased operating expenses
B. Higher interest rates
C. Depreciation of assets
D. Taxation

Correct Answer: A

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Question 13
A company is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased market share
B. Improved brand reputation
C. Reduced production costs
Correct D. Access to new markets and customers

Correct Answer: D

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Question 14
A firm's warehouse is experiencing stockouts due to inadequate inventory management. What could be the reason for this?
A. Insufficient storage capacity
Correct B. Inaccurate demand forecasting
C. Inefficient inventory control
D. Poor supplier relationships

Correct Answer: B

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Question 15
A company is considering investing in a new project. What is the primary consideration for the company's management?
A. Return on investment
B. Break-even analysis
C. Cash flow projections
Correct D. Risk assessment

Correct Answer: D

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Question 16
A company's sole trader has a business bank account with a balance of ₦125,000. If the company pays ₦25,000 as rent and ₦15,000 as utility bills, what is the new balance in the account?
Correct A. ₦85,000
B. ₦90,000
C. ₦95,000
D. ₦100,000

Correct Answer: A

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Question 17
A company's marketing strategy involves a 20% discount on all products. If a customer buys a product worth ₦10,000, how much will they pay after the discount?
Correct A. ₦8,000
B. ₦9,000
C. ₦10,000
D. ₦12,000

Correct Answer: A

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Question 18
A company's sole trader has a business bank account with a balance of ₦125,000. If the company pays ₦25,000 as rent and ₦15,000 as utility bills, what is the new balance in the account?
Correct A. ₦85,000
B. ₦90,000
C. ₦95,000
D. ₦100,000

Correct Answer: A

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Question 19
A company's marketing strategy involves a 20% discount on all products. If a customer buys a product worth ₦10,000, how much will they pay after the discount?
Correct A. ₦8,000
B. ₦9,000
C. ₦10,000
D. ₦12,000

Correct Answer: A

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Question 20
A company's sole trader has a business bank account with a balance of ₦125,000. If the company pays ₦25,000 as rent and ₦15,000 as utility bills, what is the new balance in the account?
Correct A. ₦85,000
B. ₦90,000
C. ₦95,000
D. ₦100,000

Correct Answer: A

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Question 21
A company's marketing strategy involves a combination of advertising, sales promotions, and public relations. Which of the following is a key benefit of using a combination of these tactics?
A. Increased brand awareness
B. Improved customer engagement
C. Enhanced product differentiation
Correct D. Better return on investment

Correct Answer: D

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Question 22
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15%, respectively, what is the percentage change in output?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 23
A company's marketing mix involves a product with a high level of quality and a low price. Which of the following is a potential consequence of this strategy?
A. Increased market share
B. Improved customer satisfaction
Correct C. Reduced profit margins
D. Enhanced brand reputation

Correct Answer: C

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Question 24
A firm's demand function is given by Q = 100 - 2P. If the price of the good is increased by 20%, what is the resulting change in quantity demanded?
A. -10%
Correct B. -20%
C. -30%
D. -40%

Correct Answer: B

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Question 25
A company's supply chain involves a combination of just-in-time and just-in-case inventory management. Which of the following is a key benefit of this approach?
A. Improved inventory turnover
Correct B. Enhanced supply chain flexibility
C. Reduced inventory costs
D. Increased demand forecasting accuracy

Correct Answer: B

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