POST UTME BABCOCK UNIVERSITY 2024 Commerce | Objective

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Question 1
A company is considering two marketing strategies: a social media campaign and a print advertisement. The social media campaign has a fixed cost of ₦150,000 and a variable cost of ₦5,000 per post. The print advertisement has a fixed cost of ₦200,000 and a variable cost of ₦10,000 per ad. If the company wants to spend a total of ₦500,000 on marketing, how many posts should it create on social media?
A. 100 posts
Correct B. 50 posts
C. 200 posts
D. 75 posts

Correct Answer: B

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Question 2
A sole trader named Olamide sells goods worth ₦1,000,000 in a year. She spends ₦200,000 on rent and ₦150,000 on transportation. If she pays 25% tax on her profit, how much will she pay in taxes?
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 3
A company has a profit of ₦500,000. If it pays 20% tax on its profit, how much will it pay in taxes?
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 4
A bank offers a loan of ₦1,000,000 at an interest rate of 15% per annum. If the loan is repaid after 5 years, how much will the customer pay in total?
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
Correct D. ₦1,800,000

Correct Answer: D

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Question 5
A company has a fleet of 10 vehicles, each with a capacity of 5 tons. If the company transports goods worth ₦500,000 per ton, how much will it earn in total?
A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
Correct D. ₦4,000,000

Correct Answer: D

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Question 6
In a consumer protection context, what is the primary purpose of the Consumer Protection Act of 1999?
A. To regulate consumer credit
Correct B. To protect consumers from unfair trade practices
C. To establish consumer rights and responsibilities
D. To promote consumer education

Correct Answer: B

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Question 7
A company is considering launching a new product line. Which of the following marketing strategies would be most effective in creating buzz around the product?
A. Social media advertising
Correct B. Influencer marketing
C. Content marketing
D. Event marketing

Correct Answer: B

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Question 8
A firm is considering outsourcing its logistics operations. What are the potential benefits of outsourcing?
A. Cost savings and increased efficiency
B. Improved customer service and reduced lead times
C. Access to specialized expertise and technology
Correct D. All of the above

Correct Answer: D

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Question 9
A company is considering entering a new market. What is the primary factor that determines the attractiveness of a market?
Correct A. Market size and growth rate
B. Competitor intensity and market share
C. Barriers to entry and exit
D. Government regulations and policies

Correct Answer: A

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Question 10
A firm is considering implementing a new supply chain management system. What are the potential benefits of such a system?
A. Improved inventory management and reduced stockouts
B. Increased efficiency and reduced costs
C. Enhanced customer service and satisfaction
Correct D. All of the above

Correct Answer: D

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Question 11
In a just-in-time (JIT) inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
Correct C. To ensure timely delivery of goods
D. To reduce labor costs

Correct Answer: C

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Question 12
A company has a warehouse with a capacity of 10,000 units. The current inventory level is 8,000 units. If the company receives a new shipment of 2,000 units, what is the new inventory level?
A. 6,000
B. 8,000
C. 10,000
Correct D. 12,000

Correct Answer: D

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Question 13
A firm is considering two different transportation modes: trucking and rail. The cost of trucking is ₦1,500 per unit, while the cost of rail is ₦1,200 per unit. If the firm needs to transport 5,000 units, what is the total cost of transportation using rail?
A. ₦5,000,000
Correct B. ₦6,000,000
C. ₦7,000,000
D. ₦8,000,000

Correct Answer: B

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Question 14
A company is considering exporting its products to a foreign market. The company's current price is ₦10,000 per unit, while the foreign market price is ₦12,000 per unit. If the company wants to earn a profit of 20%, what is the minimum price it should charge for its products in the foreign market?
A. ₦14,400
B. ₦15,200
C. ₦16,000
Correct D. ₦17,600

Correct Answer: D

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Question 15
A bank offers a 5-year fixed deposit account with an interest rate of 10% per annum. If a customer deposits ₦100,000, how much will the customer receive at the end of the 5-year period?
Correct A. ₦162,887.43
B. ₦163,887.43
C. ₦164,887.43
D. ₦165,887.43

Correct Answer: A

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Question 16
A bank's decision to increase interest rates on loans can have a ripple effect on the entire economy. Which of the following is a likely consequence of this action?
A. Increased consumer spending
B. Reduced inflation
Correct C. Higher unemployment rates
D. Increased business investment

Correct Answer: C

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Question 17
A company's marketing strategy involves creating a sense of urgency among customers to purchase a product. Which of the following tactics is most likely to be used?
Correct A. Limited-time offer
B. Free trial
C. Discounts
D. Gift with purchase

Correct Answer: A

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Question 18
A sole trader's business is affected by changes in the economy. Which of the following is a likely consequence of a recession?
A. Increased demand for goods and services
B. Reduced competition
Correct C. Decreased consumer spending
D. Increased government spending

Correct Answer: C

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Question 19
A company's transport policy involves reducing its carbon footprint. Which of the following modes of transport is likely to be used?
A. Air travel
B. Rail transport
Correct C. Electric vehicles
D. Bicycles

Correct Answer: C

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Question 20
A consumer protection agency is responsible for enforcing consumer rights. Which of the following is a key aspect of consumer protection?
A. Product safety
Correct B. Price transparency
C. Warranty and guarantee
D. Return and refund policies

Correct Answer: B

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Question 21
An exporter in Nigeria is considering shipping goods to a foreign country. The exporter has two options: Option A, which involves a 10% discount on the total cost of shipping, but requires a 20% deposit upfront; and Option B, which does not offer any discount, but requires only a 10% deposit upfront. If the total cost of shipping is ₦100,000, which option should the exporter choose to minimize the risk of financial loss?
Correct A. Pay a 20% deposit upfront and receive a 10% discount on the total cost of shipping.
B. Pay a 10% deposit upfront and not receive any discount on the total cost of shipping.
C. Pay a 30% deposit upfront and receive a 15% discount on the total cost of shipping.
D. Pay a 15% deposit upfront and not receive any discount on the total cost of shipping.

Correct Answer: A

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Question 22
A company in Nigeria is considering investing in a new project. The project has a 20% chance of generating a profit of ₦50,000 and a 80% chance of generating a loss of ₦20,000. What is the expected value of the project?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 23
A bank in Nigeria offers a loan of ₦100,000 at an interest rate of 15% per annum. If the loan is repaid after 5 years, what is the total amount to be repaid?
A. ₦125,000
B. ₦130,000
C. ₦135,000
Correct D. ₦140,000

Correct Answer: D

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Question 24
A company in Nigeria is considering importing goods from a foreign country. The company has two options: Option A, which involves a 10% duty on the total cost of the goods; and Option B, which involves a 5% duty on the total cost of the goods. If the total cost of the goods is ₦50,000, which option should the company choose to minimize the cost?
A. Option A
Correct B. Option B
C. Option C
D. Option D

Correct Answer: B

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Question 25
A person in Nigeria has a savings account with a bank. The account earns an interest rate of 10% per annum. If the person deposits ₦50,000 into the account and leaves it for 5 years, what is the total amount in the account after 5 years?
A. ₦65,000
B. ₦70,000
C. ₦75,000
Correct D. ₦80,000

Correct Answer: D

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