POST UTME BABCOCK UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A warehouse is using a first-in-first-out (FIFO) inventory system. If the oldest item in the warehouse has a value of ₦1500 and the next oldest item has a value of ₦1200, what is the total value of the oldest 5 items?
A. ₦7500
B. ₦8000
C. ₦8500
D. ₦9000
Question 2
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units and already has 3,000 units in stock. What is the total number of units in the warehouse?
A. 8000
B. 10000
C. 12000
D. 15000
Question 3
A firm has a 20% markup on its products. If a product costs ₦5,000 to produce, what is the selling price?
A. ₦6,000
B. ₦6,000
C. ₦6,000
D. ₦6,000
Question 4
A company has a policy of paying its employees a 10% bonus on their annual salaries. If an employee's salary is ₦500,000, what is the bonus amount?
A. ₦50,000
B. ₦45,000
C. ₦55,000
D. ₦60,000
Question 5
A risk management strategy involves diversifying investments to minimize losses. What is the term for this type of investment?
A. Hedging
B. Diversification
C. Speculation
D. Arbitrage
Question 6
A company is considering the purchase of a new machine. The machine costs ₦500,000 and has a useful life of 5 years. The company expects to sell the machine at the end of its useful life for ₦200,000. What is the annual depreciation of the machine using the straight-line method?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 7
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units and already has 3,000 units in stock. What is the total number of units in the warehouse?
A. 8000
B. 10000
C. 12000
D. 15000
Question 8
A consumer purchases a product from a retailer, but the product does not meet the consumer's expectations. The consumer seeks redress through a legal channel. What type of law governs this situation?
A. Contract law
B. Tort law
C. Property law
D. Consumer protection law
Question 9
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Tax benefits
C. Easy setup and management
D. Flexibility in decision-making
Question 10
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the implication of this on the sole trader's business?
A. The sole trader's business is not liable to pay taxes.
B. The sole trader's business is not entitled to issue receipts.
C. The sole trader's business is not required to keep financial records.
D. The sole trader's business is not protected by law.
Question 11
A firm specializes in producing a single product, which is a type of commodity. The commodity is characterized by its homogeneity and perfect substitutability. What is the name of this type of commodity?
A. Standardized commodity
B. Specialized commodity
C. Homogeneous commodity
D. Perfectly substitutable commodity
Question 12
A consumer purchases a product from a retailer, but the product is defective. The consumer seeks redress through a legal channel. What type of law governs this situation?
A. Contract law
B. Tort law
C. Property law
D. Consumer protection law
Question 13
In a sole proprietorship business, the owner's personal assets are not protected from business liabilities. What is the correct term for this type of business?
A. Sole Proprietorship
B. Partnership
C. Limited Liability Company
D. Corporation
Question 14
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee earns ₦1,200,000 per year, what is the total amount the employee will receive, including the bonus?
A. ₦1,320,000
B. ₦1,320,000
C. ₦1,320,000
D. ₦1,320,000
Question 15
A company is launching a new product and wants to create a marketing campaign that will appeal to its target audience. Which of the following marketing strategies is most likely to be effective?
A. Social media advertising
B. Influencer marketing
C. Content marketing
D. Event marketing

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