Practice post utme bells university commerce 2019 Past Questions

Question 1

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.

Correct C. The firm's product is homogeneous with other firms' products.

D. The firm's product is a complementary good.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

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.

Correct 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.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A firm is considering the production of a new product. The firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 100 units of the product, how many units of labor and capital should it hire?

A. L = 25, K = 25

Correct B. L = 50, K = 50

C. L = 100, K = 100

D. L = 200, K = 200

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A company's warehouse has a capacity of 10,000 units. The company's inventory level is currently at 5,000 units. The company's ordering cost is ₦100 per order, and the holding cost is ₦5 per unit per year. If the company wants to maintain a safety stock of 1,000 units, what is the optimal order quantity?

A. 1,000 units

B. 2,000 units

Correct C. 3,000 units

D. 4,000 units

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A bank's balance sheet shows that its assets are ₦100 million, its liabilities are ₦50 million, and its equity is ₦50 million. What is the bank's liquidity ratio?

A. 1:1

Correct B. 2:1

C. 3:1

D. 4:1

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

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

Correct D. Separate business registration

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A company's marketing strategy involves creating a new product line. What type of market research would be most relevant to this decision?

A. Competitor analysis

Correct B. Market segmentation

C. Product life cycle analysis

D. SWOT analysis

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A bank's primary function is to act as a financial intermediary. What is the main benefit of this function?

Correct A. Increased liquidity

B. Reduced risk

C. Improved profitability

D. Enhanced customer service

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

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

Correct B. Economic order quantity (EOQ) system

C. Material requirements planning (MRP) system

D. Total quality management (TQM) system

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A company's foreign trade involves exporting goods to a foreign market. What type of trade agreement would be most relevant to this scenario?

A. Export agreement

B. Import agreement

C. Trade treaty

Correct D. Free trade agreement

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

In a sole proprietorship, the owner's personal assets are protected from business liabilities through a legal entity known as a(n)

A. Trust

B. Corporation

C. Partnership

Correct D. Limited Liability Company

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A company's financial statements are audited annually by an independent auditor to ensure compliance with accounting standards and regulatory requirements. This process is known as

A. Financial Statement Analysis

Correct B. Auditing

C. Financial Planning

D. Financial Reporting

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

The marketing mix, also known as the 4 Ps, consists of product, price, promotion, and

Correct A. Place

B. People

C. Process

D. Physical Distribution

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A company's foreign trade involves the importation of goods from a foreign country. This is an example of

A. Export

Correct B. Import

C. Domestic Trade

D. International Trade

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

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

Correct C. Risk Mitigation

D. Risk Acceptance

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

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

Correct B. Social media campaign

C. Both campaigns

D. Neither campaign

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A sole trader is considering expanding their business by opening a new store. The new store is expected to increase sales by 15% and reduce costs by 10%. However, the new store will also require an initial investment of ₦500,000. What is the expected return on investment (ROI) for the new store?

A. 10%

Correct B. 15%

C. 20%

D. 25%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A company is considering outsourcing its logistics to a third-party provider. The third-party provider has offered a 10% discount on the current logistics costs. However, the company will also have to pay a 5% fee to the third-party provider. What is the net effect on the company's logistics costs?

A. 5% increase

Correct B. 5% decrease

C. 10% decrease

D. No change

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

A company is considering implementing a just-in-time (JIT) inventory system. The JIT system is expected to reduce inventory costs by 20% and improve inventory turnover by 15%. However, the JIT system will also require an initial investment of ₦200,000. What is the expected return on investment (ROI) for the JIT system?

A. 10%

B. 15%

Correct C. 20%

D. 25%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

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%

Correct C. 15%

D. 18%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

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

Correct C. 20

D. 25

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

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?

Correct A. ₦150,000

B. ₦120,000

C. ₦180,000

D. ₦200,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A company has a production capacity of 5000 units of goods per month. The company wants to increase its production by 20% to meet the increasing demand. What is the new production capacity of the company?

Correct A. 6000

B. 5500

C. 5000

D. 4500

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

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?

Correct A. ₦120,000

B. ₦100,000

C. ₦180,000

D. ₦200,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

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

Correct C. 20

D. 25

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME BELLS UNIVERSITY 2019 Commerce | Objective

Master the Exam!

Help others prepare! Share this practice hub: