POST UTME AL-HIKMAH UNIVERSITY 2018 Commerce | Objective

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Question 1
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
Correct C. Sole Proprietorship
D. Cooperative Society

Correct Answer: C

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Question 2
A company's articles of association are a document that outlines the rules and regulations of the company. Which of the following is NOT a part of the articles of association?
A. Objects of the company
B. Management structure
C. Share capital
Correct D. Directors' remuneration

Correct Answer: D

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Question 3
A warehouse is a facility used for storing goods. Which of the following is a type of warehouse?
A. Cold storage warehouse
B. Dry goods warehouse
C. Automated warehouse
Correct D. All of the above

Correct Answer: D

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Question 4
A marketing strategy is a plan that outlines the goals and objectives of a company's marketing efforts. Which of the following is a type of marketing strategy?
A. Product differentiation
B. Market segmentation
C. Positioning
Correct D. All of the above

Correct Answer: D

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Question 5
A bank is a financial institution that provides a range of financial services to its customers. Which of the following is a type of bank?
A. Commercial bank
B. Investment bank
C. Central bank
Correct D. All of the above

Correct Answer: D

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Question 6
A company's sole trader is considering the introduction of a new product line. The product line requires an initial investment of ₦1,500,000 and is expected to generate an annual profit of ₦750,000. If the company's cost of capital is 12% per annum, what is the expected rate of return on investment (ROI) for the new product line?
A. 15%
Correct B. 18%
C. 20%
D. 22%

Correct Answer: B

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Question 7
A firm's financial statements show that its total assets have increased by 25% over the past year, while its total liabilities have increased by 15%. If the firm's equity has increased by 10%, what is the ratio of its total assets to total liabilities?
A. 1.5
B. 1.75
Correct C. 2.0
D. 2.25

Correct Answer: C

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Question 8
A bank's cash management system involves the use of a cash forecasting model to predict future cash inflows and outflows. The model uses a combination of historical data and econometric techniques to generate forecasts. What is the primary advantage of using a cash forecasting model in a bank's cash management system?
Correct A. Improved cash flow forecasting
B. Enhanced risk management
C. Increased efficiency in cash management
D. Better decision-making

Correct Answer: A

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Question 9
A company's sole trader is considering the introduction of a new product line. The product line requires an initial investment of ₦1,500,000 and is expected to generate an annual profit of ₦750,000. If the company's cost of capital is 12% per annum, what is the expected rate of return on investment (ROI) for the new product line?
A. 15%
Correct B. 18%
C. 20%
D. 22%

Correct Answer: B

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Question 10
A firm's financial statements show that its total assets have increased by 25% over the past year, while its total liabilities have increased by 15%. If the firm's equity has increased by 10%, what is the ratio of its total assets to total liabilities?
A. 1.5
B. 1.75
Correct C. 2.0
D. 2.25

Correct Answer: C

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Question 11
A company is considering the introduction of a new product. The product's demand is expected to be 1000 units in the first year, increasing by 20% each year for the next 5 years. If the company wants to maximize its profit, which of the following production levels would be most appropriate?
A. 1000 units
B. 1200 units
Correct C. 1500 units
D. 2000 units

Correct Answer: C

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Question 12
A firm is considering two different production processes for its new product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦100 per unit, which process would result in the highest profit?
Correct A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

Correct Answer: A

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Question 13
A company is considering the introduction of a new product. The product's demand is expected to be 1000 units in the first year, increasing by 20% each year for the next 5 years. If the company wants to maximize its profit, which of the following production levels would be most appropriate?
A. 1000 units
B. 1200 units
Correct C. 1500 units
D. 2000 units

Correct Answer: C

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Question 14
A firm is considering two different production processes for its new product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦100 per unit, which process would result in the highest profit?
Correct A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

Correct Answer: A

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Question 15
A company is considering the introduction of a new product. The product's demand is expected to be 1000 units in the first year, increasing by 20% each year for the next 5 years. If the company wants to maximize its profit, which of the following production levels would be most appropriate?
A. 1000 units
B. 1200 units
Correct C. 1500 units
D. 2000 units

Correct Answer: C

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Question 16
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦10,000,000, how much cash must it reserve?
Correct A. ₦2,000,000
B. ₦1,500,000
C. ₦2,500,000
D. ₦1,000,000

Correct Answer: A

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Question 17
A company's stock is valued at ₦100 per share. If the company issues 10,000 shares, how much will it raise?
Correct A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦1,200,000

Correct Answer: A

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Question 18
A consumer protection agency receives a complaint about a company's unfair business practices. The agency's first step is to?
Correct A. Investigate the complaint
B. Issue a warning to the company
C. File a lawsuit against the company
D. Dismiss the complaint

Correct Answer: A

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Question 19
A warehouse has a storage capacity of 10,000 units. If it currently has 8,000 units stored, what is the maximum number of units it can store?
Correct A. 2,000
B. 5,000
C. 8,000
D. 10,000

Correct Answer: A

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Question 20
A company has a 10% chance of experiencing a loss due to a natural disaster. If the company's assets are valued at ₦1,000,000, what is the expected value of the loss?
Correct A. ₦100,000
B. ₦200,000
C. ₦500,000
D. ₦1,000,000

Correct Answer: A

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Question 21
The marketing mix of a product can be described as a combination of which of the following?
Correct A. Product, Price, Place, Promotion
B. Product, Price, Place, Packaging
C. Product, Price, Place, People
D. Product, Price, Place, Process

Correct Answer: A

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Question 22
A company is considering the introduction of a new product line. Which of the following is a key consideration in the decision-making process?
A. Market demand and competition
B. Production costs and supply chain management
C. Financial resources and investment returns
Correct D. All of the above

Correct Answer: D

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Question 23
A consumer has purchased a product that has been damaged during transportation. Which of the following is the consumer's right under the Consumer Protection Act?
A. To return the product for a full refund
B. To exchange the product for a new one
Correct C. To claim compensation for the damage
D. To sue the manufacturer for negligence

Correct Answer: C

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Question 24
A company is considering the use of a just-in-time inventory system. Which of the following is a key benefit of this system?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
Correct D. All of the above

Correct Answer: D

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Question 25
A company is exporting goods to a foreign country. Which of the following is a key consideration in the export process?
A. Compliance with import regulations
B. Compliance with export regulations
C. Compliance with customs regulations
Correct D. All of the above

Correct Answer: D

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