POST UTME BELLS UNIVERSITY 2017 Commerce | Objective

Are you preparing for POST UTME BELLS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. What is the primary advantage of registering a sole trader's business under CAMA?
A. Limited liability protection
B. Increased tax benefits
Correct C. Simplified registration process
D. Enhanced business credibility

Correct Answer: C

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Question 2
A company's production process involves the use of specialized machinery. What is the primary benefit of using specialized machinery in production?
A. Increased labor costs
B. Improved product quality
Correct C. Enhanced production efficiency
D. Reduced raw material costs

Correct Answer: C

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Question 3
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the primary benefit of a bank's financial intermediation function?
A. Increased risk of default
B. Improved liquidity management
Correct C. Enhanced credit availability
D. Reduced interest rates

Correct Answer: C

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Question 4
A consumer protection law requires businesses to provide clear and accurate information about their products. What is the primary benefit of clear and accurate product information?
Correct A. Increased consumer trust
B. Improved product quality
C. Enhanced consumer satisfaction
D. Reduced product returns

Correct Answer: A

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Question 5
A company's transport system involves the use of specialized vehicles. What is the primary benefit of using specialized vehicles in transport?
A. Increased fuel consumption
Correct B. Improved transport efficiency
C. Enhanced product delivery
D. Reduced labor costs

Correct Answer: B

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Question 6
A firm's inventory turnover ratio is 4.5 times per year. If its average inventory is ₦1,500,000, what is the total value of its annual sales?
A. ₦6,750,000
Correct B. ₦7,500,000
C. ₦8,250,000
D. ₦9,000,000

Correct Answer: B

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Question 7
A company's cost of goods sold is ₦1,200,000. If its gross profit is ₦450,000, what is its total revenue?
A. ₦1,650,000
B. ₦1,700,000
Correct C. ₦1,750,000
D. ₦1,800,000

Correct Answer: C

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Question 8
A firm's accounts receivable turnover ratio is 8 times per year. If its average accounts receivable is ₦2,000,000, what is the total value of its annual sales?
A. ₦16,000,000
B. ₦18,000,000
Correct C. ₦20,000,000
D. ₦22,000,000

Correct Answer: C

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Question 9
A company's accounts payable turnover ratio is 12 times per year. If its average accounts payable is ₦3,500,000, what is the total value of its annual purchases?
A. ₦42,000,000
B. ₦45,000,000
Correct C. ₦48,000,000
D. ₦51,000,000

Correct Answer: C

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Question 10
A firm's inventory turnover ratio is 6 times per year. If its average inventory is ₦2,500,000, what is the total value of its annual purchases?
A. ₦15,000,000
B. ₦16,500,000
Correct C. ₦18,000,000
D. ₦19,500,000

Correct Answer: C

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Question 11
The marketing mix is a crucial tool for businesses to understand their customers' needs and preferences. Which of the following is NOT a key element of the marketing mix?
A. Product
B. Price
C. Place
Correct D. Personality

Correct Answer: D

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Question 12
A company is considering implementing a just-in-time inventory system. What are the potential benefits of this system?
A. Reduced inventory costs
B. Improved customer satisfaction
C. Increased efficiency
Correct D. All of the above

Correct Answer: D

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Question 13
A consumer has purchased a product that has been damaged in transit. What is the consumer's primary recourse?
Correct A. Return the product for a full refund
B. Exchange the product for a new one
C. File a complaint with the manufacturer
D. Seek compensation from the retailer

Correct Answer: A

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Question 14
A company is considering expanding its operations to a new market. What is the primary factor that the company should consider?
A. Market size
B. Market growth rate
C. Market competition
Correct D. Market accessibility

Correct Answer: D

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Question 15
A company has implemented a new insurance policy to protect against business risks. What is the primary benefit of this policy?
Correct A. Reduced financial risk
B. Improved business continuity
C. Enhanced customer satisfaction
D. Increased market share

Correct Answer: A

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Question 16
A company specializes in producing high-quality leather goods. It has a warehouse with a capacity to store 10,000 units of finished goods. The company uses a just-in-time inventory system and receives new shipments every week. If the company's average weekly sales are 1,500 units, what is the maximum number of weeks the company can operate without running out of stock?
A. 4 weeks
B. 6 weeks
Correct C. 8 weeks
D. 10 weeks

Correct Answer: C

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Question 17
A sole trader, Mr. A, has a business that sells electronic devices. He has a contract with a supplier to purchase 100 units of a particular device every month. The contract price is ₦10,000 per unit. If Mr. A sells each unit for ₦15,000, what is his profit per unit?
A. ₦5,000
B. ₦5,500
Correct C. ₦6,000
D. ₦6,500

Correct Answer: C

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Question 18
A company has a warehouse with a capacity to store 5,000 units of raw materials. The company uses a first-in-first-out (FIFO) inventory system and receives new shipments every two weeks. If the company's average weekly usage is 250 units, what is the maximum number of weeks the company can operate without running out of stock?
A. 8 weeks
B. 10 weeks
Correct C. 12 weeks
D. 14 weeks

Correct Answer: C

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Question 19
A company has a contract with a supplier to purchase 500 units of a particular device every month. The contract price is ₦8,000 per unit. If the company sells each unit for ₦12,000, what is the total profit for the month?
A. ₦3,000,000
B. ₦3,500,000
Correct C. ₦4,000,000
D. ₦4,500,000

Correct Answer: C

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Question 20
A company has a warehouse with a capacity to store 10,000 units of finished goods. The company uses a just-in-time inventory system and receives new shipments every week. If the company's average weekly sales are 1,000 units, what is the maximum number of weeks the company can operate without running out of stock?
A. 4 weeks
B. 6 weeks
Correct C. 8 weeks
D. 10 weeks

Correct Answer: C

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Question 21
A bank's liquidity ratio is calculated as the ratio of its liquid assets to its total deposits. If a bank has ₦1.2 billion in liquid assets and ₦2.5 billion in total deposits, what is its liquidity ratio?
Correct A. 0.48
B. 0.48
C. 0.48
D. 0.48

Correct Answer: A

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Question 22
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. It is customer-focused
B. It is cost-effective
C. It is sustainable
Correct D. It is environmentally friendly

Correct Answer: D

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Question 23
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm increases its labor from 100 to 120 and its capital from 100 to 120, what is the percentage change in output?
A. 10%
Correct B. 15%
C. 20%
D. 25%

Correct Answer: B

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Question 24
A company's foreign exchange risk arises from its exposure to fluctuations in exchange rates. Which of the following is a method of managing foreign exchange risk?
Correct A. Hedging
B. Diversification
C. Risk avoidance
D. Risk reduction

Correct Answer: A

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Question 25
A firm's supply chain involves the transportation of goods from the supplier to the customer. Which of the following is a mode of transportation?
Correct A. Road
B. Rail
C. Air
D. Sea

Correct Answer: A

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