POST UTME AFE BABALOLA UNIVERSITY 2023 Commerce | Objective

Are you preparing for POST UTME AFE BABALOLA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2023 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's risk management strategy involves diversification of its investments across various asset classes. However, the company's portfolio is heavily skewed towards stocks, which are known to be volatile. What is the primary risk associated with this strategy?
Correct A. Systemic risk
B. Credit risk
C. Liquidity risk
D. Operational risk

Correct Answer: A

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Question 2
A warehouse manager wants to optimize the storage capacity of a warehouse by arranging boxes of different sizes in a 3D layout. If the boxes are rectangular prisms with dimensions 2m x 1m x 0.5m, what is the maximum number of boxes that can be stored in a warehouse with a volume of 1000m^3?
A. 200
B. 250
Correct C. 300
D. 350

Correct Answer: C

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Question 3
A foreign trade agreement between two countries involves the exchange of goods worth 100 million. If the exchange rate is 1 USD = 500 Naira, what is the equivalent value of the goods in Naira?
A. ₦50 billion
B. ₦75 billion
Correct C. ₦100 billion
D. ₦125 billion

Correct Answer: C

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Question 4
A company's cash flow statement shows a net increase in cash of 10 million. However, the company's balance sheet shows a decrease in cash of 5 million. What is the reason for this discrepancy?
A. Error in accounting
Correct B. Cash inflows were not properly recorded
C. Cash outflows were not properly recorded
D. The company's accounting period ended on a non-cash transaction

Correct Answer: B

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Question 5
A bank's risk management strategy involves the use of derivatives to hedge against interest rate risk. However, the bank's derivatives portfolio is heavily skewed towards interest rate swaps, which are known to be sensitive to changes in interest rates. What is the primary risk associated with this strategy?
A. Credit risk
B. Liquidity risk
C. Operational risk
Correct D. Market risk

Correct Answer: D

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Question 6
A company specializes in producing and marketing a single product. This specialization allows the company to focus its resources on a specific area, leading to increased efficiency and productivity. What is the term for this type of production?
A. Mass Production
B. Batch Production
C. Job Production
Correct D. Specialization

Correct Answer: D

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Question 7
A firm's production function is given by the equation Q = 2L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to produce 100 units of output, and it has 4 units of labor and 9 units of capital, what is the minimum amount of capital it needs to produce 100 units of output?
A. 3
B. 4
Correct C. 5
D. 6

Correct Answer: C

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Question 8
A bank's balance sheet is given by the equation Assets = Liabilities + Equity. If the bank has 100 units of assets and 50 units of liabilities, what is the minimum amount of equity it needs to have?
A. 25
B. 30
Correct C. 35
D. 40

Correct Answer: C

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Question 9
A company is considering two marketing strategies: a push strategy and a pull strategy. The push strategy involves promoting the product to intermediaries, while the pull strategy involves promoting the product directly to consumers. Which strategy is more likely to result in a higher sales volume?
A. Push Strategy
Correct B. Pull Strategy
C. Both Strategies
D. Neither Strategy

Correct Answer: B

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Question 10
A warehouse is storing 100 units of goods. The warehouse has a capacity of 200 units. If the warehouse is currently 50% full, what is the maximum number of units that can be added to the warehouse?
A. 50
B. 75
C. 100
Correct D. 125

Correct Answer: D

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Question 11
A company's financial statements show a decrease in revenue and an increase in expenses. What is the likely effect on its liquidity ratio?
A. Increase
Correct B. Decrease
C. No change
D. Uncertain

Correct Answer: B

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Question 12
A firm is considering two investment projects. Project A has a higher initial cost but generates higher returns over its lifespan. Project B has a lower initial cost but generates lower returns. Which project should the firm choose?
Correct A. Project A
B. Project B
C. Both projects are equally good
D. Neither project is good

Correct Answer: A

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Question 13
A consumer buys a product for ₦1000 and sells it for ₦1200. What is the profit percentage?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 14
A company's cash flow statement shows a decrease in cash from operating activities and an increase in cash from investing activities. What is the likely effect on its cash balance?
A. Increase
Correct B. Decrease
C. No change
D. Uncertain

Correct Answer: B

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Question 15
A firm is considering two suppliers for a raw material. Supplier A offers a lower price but has a longer delivery time, while Supplier B offers a higher price but has a shorter delivery time. Which supplier should the firm choose?
A. Supplier A
Correct B. Supplier B
C. Both suppliers are equally good
D. Neither supplier is good

Correct Answer: B

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Question 16
A sole trader's business is registered under which of the following?
A. Partnership
Correct B. Sole Proprietorship
C. Company
D. Cooperative

Correct Answer: B

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Question 17
A company's articles of association may be altered by a special resolution passed by a majority of not less than _________ of the members entitled to vote.
A. 50%
Correct B. 75%
C. 66%
D. 75.1%

Correct Answer: B

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Question 18
A sole trader's business is registered under which of the following?
A. Partnership
Correct B. Sole Proprietorship
C. Company
D. Cooperative

Correct Answer: B

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Question 19
A company's articles of association may be altered by a special resolution passed by a majority of not less than _________ of the members entitled to vote.
A. 50%
Correct B. 75%
C. 66%
D. 75.1%

Correct Answer: B

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Question 20
A sole trader's business is registered under which of the following?
A. Partnership
Correct B. Sole Proprietorship
C. Company
D. Cooperative

Correct Answer: B

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Question 21
A company's sole trader has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the minimum number of units that must be stored in the warehouse to fulfill the order?
A. 3,500
B. 4,000
C. 4,500
Correct D. 5,000

Correct Answer: D

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Question 22
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the minimum number of units that must be stored in the warehouse to fulfill the order?
A. 3,500
B. 4,000
C. 4,500
Correct D. 5,000

Correct Answer: D

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Question 23
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the minimum number of units that must be stored in the warehouse to fulfill the order?
A. 3,500
B. 4,000
C. 4,500
Correct D. 5,000

Correct Answer: D

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Question 24
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the minimum number of units that must be stored in the warehouse to fulfill the order?
A. 3,500
B. 4,000
C. 4,500
Correct D. 5,000

Correct Answer: D

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Question 25
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the minimum number of units that must be stored in the warehouse to fulfill the order?
A. 3,500
B. 4,000
C. 4,500
Correct D. 5,000

Correct Answer: D

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