POST UTME BABCOCK UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The Consumer Protection Act of 1999 provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. The Act provides for the establishment of a Consumer Protection Council.
B. The Act provides for the protection of consumers from unfair trade practices.
C. The Act provides for the establishment of a Consumer Protection Agency.
D. The Act provides for the protection of consumers from false advertising.
Question 2
An insurance company offers a policy with a premium of ₦10,000 per annum. The policy covers a maximum of ₦5 million in case of a loss. If the probability of a loss occurring is 0.05, what is the expected value of the policy?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 3
A firm is considering exporting its products to a foreign country. The firm's export price is 100 per unit, while the foreign country's import price is 120 per unit. If the firm exports 10,000 units per month, what is the firm's export revenue in foreign currency?
A. 1,200,000
B. 1,500,000
C. 1,800,000
D. 2,000,000
Question 4
A bank offers a loan of ₦500,000 at an interest rate of 12% per annum compounded annually. If the loan is repaid in 5 years, what is the total amount paid by the borrower?
A. ₦675,000
B. ₦725,000
C. ₦775,000
D. ₦825,000
Question 5
A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment in advertising, but the company expects a high return on investment. Strategy B involves a lower initial investment in advertising, but the company expects a lower return on investment. Which strategy is more likely to be successful?
A. High-risk, high-reward strategy
B. Low-risk, low-reward strategy
C. High-risk, low-reward strategy
D. Low-risk, high-reward strategy
Question 6
A company is considering two different marketing strategies for its new product. The first strategy involves a high level of advertising and promotion, while the second strategy involves a low level of advertising and promotion. Which strategy is more likely to result in a higher level of sales?
A. The high level of advertising and promotion will result in a higher level of sales.
B. The low level of advertising and promotion will result in a higher level of sales.
C. The level of sales will be the same regardless of the marketing strategy.
D. There is not enough information to determine which strategy will result in a higher level of sales.
Question 7
A company has a sole trader as its owner. What is the primary advantage of this business structure?
A. The company has unlimited liability.
B. The company has limited liability.
C. The company has a separate legal identity.
D. The company has a sole owner.
Question 8
A company's marketing strategy involves creating a brand identity that is consistent across all channels. This approach is an example of?
A. Segmentation
B. Targeting
C. Positioning
D. Branding
Question 9
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the optimal combination of labor and capital that minimizes the cost of production?
A. L = 4, K = 16
B. L = 16, K = 4
C. L = 8, K = 8
D. L = 2, K = 32
Question 10
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. Using the budget constraint, find the consumer's optimal consumption bundle.
A. A = 2, B = 1
B. A = 1, B = 2
C. A = 3, B = 0
D. A = 0, B = 3
Question 11
A sole trader has a business income of ₦500,000 and business expenses of ₦200,000. What is the profit of the business?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 12
A firm is considering purchasing insurance to protect against business risks. What type of insurance would be most beneficial?
A. Liability insurance
B. Property insurance
C. Business interruption insurance
D. Workers' compensation insurance
Question 13
A firm has a capital structure consisting of 60% debt and 40% equity. If the cost of debt is 8% and the cost of equity is 12%, what is the weighted average cost of capital (WACC) for the firm?
A. 6%
B. 7%
C. 8%
D. 9%
Question 14
A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦5,000 per ton, while the cost of transporting goods by rail is ₦3,000 per ton. If the company transports 10,000 tons of goods per month, what is the total cost of transportation if the company uses a combination of road and rail?
A. ₦40,000,000
B. ₦45,000,000
C. ₦50,000,000
D. ₦55,000,000
Question 15
A company exports goods worth ₦1,000,000 to a foreign country. The company has to pay a 10% import duty on the goods. What is the amount of import duty paid?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000

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: