POST UTME BELLS UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering implementing a warehouse management system (WMS) to improve its inventory management. The WMS is expected to reduce inventory costs by 15% and improve inventory turnover by 10%. However, the WMS will also require an initial investment of ₦150,000. What is the expected return on investment (ROI) for the WMS?
A. 10%
B. 12%
C. 15%
D. 18%
Question 2
A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?
A. Limited liability
B. Separate tax returns
C. Separate business bank account
D. Separate business registration
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, how many units of capital (K) are required?
A. 4
B. 8
C. 16
D. 32
Question 4
A consumer has a budget of ₦1,000 and a preference for two goods: A and B. The prices of these goods are ₦200 and ₦300 respectively. If the consumer spends all their budget on good A, how much of good B can they afford?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 5
A firm is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦150 per unit, while the cost of transporting goods by rail is ₦120 per unit. If the firm needs to transport 1000 units of goods, what is the total cost of transportation by road?
A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦200,000
Question 6
The risk management process involves identifying, assessing, and mitigating risks to minimize their impact on the organization. This process is also known as
A. Risk Avoidance
B. Risk Transfer
C. Risk Mitigation
D. Risk Acceptance
Question 7
In a monopolistically competitive market, a firm's demand curve is downward sloping due to the presence of many close substitutes. However, the firm still experiences a downward-sloping demand curve because of the following reason:
A. The firm's product is a necessity.
B. The firm's product is a luxury good.
C. The firm's product is homogeneous with other firms' products.
D. The firm's product is a complementary good.
Question 8
A company's financial statements show that its current ratio is 2:1. However, the company's acid-test ratio is 1:1. What does this indicate about the company's liquidity position?
A. The company has a high level of liquidity.
B. The company has a low level of liquidity.
C. The company's liquidity position is uncertain.
D. The company's liquidity position is stable.
Question 9
A warehouse's inventory management system involves tracking stock levels. What type of inventory control system would be most effective in this scenario?
A. Just-in-time inventory system
B. Economic order quantity (EOQ) system
C. Material requirements planning (MRP) system
D. Total quality management (TQM) system
Question 10
A company's foreign trade involves the importation of goods from a foreign country. This is an example of
A. Export
B. Import
C. Domestic Trade
D. International Trade
Question 11
A bank's primary function is to act as a financial intermediary. What is the main benefit of this function?
A. Increased liquidity
B. Reduced risk
C. Improved profitability
D. Enhanced customer service
Question 12
A firm is considering two different modes of payment for its goods: cash and credit. The cost of payment by cash is ₦100 per unit, while the cost of payment by credit is ₦120 per unit. If the firm needs to pay for 1000 units of goods, what is the total cost of payment by credit?
A. ₦120,000
B. ₦100,000
C. ₦180,000
D. ₦200,000
Question 13
A company has a warehouse with a capacity to store 5000 units of goods. The warehouse is currently 70% full, and the company wants to store an additional 1500 units of goods. What is the minimum number of shelves that need to be added to the warehouse?
A. 10
B. 15
C. 20
D. 25
Question 14
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied also increases. However, this is not always the case. What is the name of the phenomenon that occurs when an increase in price leads to a decrease in quantity supplied?
A. Giffen Goods
B. Inferior Goods
C. Normal Goods
D. Substitutes
Question 15
A company is considering two marketing strategies: a traditional advertising campaign and a social media campaign. The traditional advertising campaign is expected to reach 80% of the target audience, while the social media campaign is expected to reach 60% of the target audience. However, the social media campaign is expected to be 20% more effective than the traditional advertising campaign. Which marketing strategy should the company choose?
A. Traditional advertising campaign
B. Social media campaign
C. Both campaigns
D. Neither campaign

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