POST UTME BOWEN UNIVERSITY 2019 Commerce | Objective

Are you preparing for POST UTME BOWEN UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a production system, specialization occurs when a firm focuses on producing a specific product or service, thereby increasing its efficiency and reducing costs. What is the term for this phenomenon?
A. Economies of scale
Correct B. Division of labor
C. Product differentiation
D. Vertical integration

Correct Answer: B

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Question 2
A firm has a warehouse with a capacity of 10,000 units. The firm receives an order for 5,000 units and has a safety stock of 2,000 units. What is the total stock level after receiving the order?
A. 10000
Correct B. 12000
C. 15000
D. 20000

Correct Answer: B

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Question 3
A consumer purchases a product for ₦1,000 and pays a 10% sales tax. What is the total amount paid by the consumer?
Correct A. ₦1100
B. ₦1200
C. ₦1300
D. ₦1400

Correct Answer: A

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Question 4
A firm has a production cost of ₦500 per unit and sells the product for ₦1,000 per unit. What is the profit per unit?
A. ₦500
Correct B. ₦750
C. ₦1000
D. ₦1250

Correct Answer: B

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Question 5
A firm has a liability of ₦100,000 and has a claim of ₦150,000. What is the net liability?
Correct A. ₦50000
B. ₦100000
C. ₦150000
D. ₦200000

Correct Answer: A

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Question 6
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
Correct D. Flexibility in management

Correct Answer: D

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Question 7
A company has a share capital of ₦10,000,000, divided into 10,000,000 ordinary shares of ₦1 each. If the company issues 2,000,000 shares at a premium of ₦0.50 per share, what is the total amount received from the issue of shares?
A. ₦2,000,000
Correct B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000

Correct Answer: B

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Question 8
A consumer purchases a product with a price of ₦5,000 and a discount of 10%. If the consumer pays with a credit card that charges a 5% interest rate, what is the total amount paid by the consumer?
A. ₦5,250
B. ₦5,375
C. ₦5,500
Correct D. ₦5,625

Correct Answer: D

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Question 9
A company has a fleet of 10 vehicles, each with an average annual mileage of 50,000 km. If the company pays ₦0.50 per km for fuel, what is the total fuel cost for the year?
A. ₦25,000
B. ₦25,500
C. ₦26,000
Correct D. ₦26,500

Correct Answer: D

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Question 10
A consumer purchases a product with a price of ₦10,000 and a warranty period of 2 years. If the consumer pays with a credit card that charges a 5% interest rate, what is the total amount paid by the consumer?
A. ₦10,500
B. ₦10,750
C. ₦11,000
Correct D. ₦11,250

Correct Answer: D

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Question 11
A bank's liquidity ratio is calculated as the ratio of its liquid assets to its total deposits. If a bank has ₦500 million in liquid assets and ₦1.5 billion in total deposits, what is its liquidity ratio?
A. 0.25
Correct B. 0.33
C. 0.50
D. 0.67

Correct Answer: B

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Question 12
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
Correct C. It is environmentally friendly
D. It is competitive

Correct Answer: C

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Question 13
A firm's break-even point is the point at which its total revenue equals its total fixed costs. If a firm's total fixed costs are ₦200,000 and its selling price is ₦500, what is its break-even point?
A. ₦100,000
Correct B. ₦200,000
C. ₦500,000
D. ₦1,000,000

Correct Answer: B

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Question 14
A company's insurance policy covers losses due to fire, theft, and natural disasters. Which of the following is NOT a type of risk covered by this policy?
A. Fire
B. Theft
C. Natural disasters
Correct D. Cyber attacks

Correct Answer: D

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Question 15
A firm's supply chain involves the transportation of goods from the factory to the warehouse. Which of the following is a type of transportation mode used in this supply chain?
A. Rail
Correct B. Road
C. Air
D. Water

Correct Answer: B

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Question 16
A company's risk management strategy involves diversification of its investments across various asset classes. If the company has a portfolio of stocks, bonds, and real estate, and each asset class has a different expected return and standard deviation, which of the following is the most appropriate measure of risk for the portfolio?
A. Beta
B. Standard Deviation
Correct C. Sharpe Ratio
D. Value-at-Risk

Correct Answer: C

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Question 17
A firm is considering investing in a new project with the following cash flows: Year 1: -₦100,000, Year 2: ₦150,000, Year 3: ₦200,000. If the firm's cost of capital is 10%, what is the present value of the project?
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 18
A company is considering exporting its products to a foreign market. The company's marketing manager has identified the following costs associated with exporting: transportation costs, insurance costs, and documentation costs. Which of the following is the most appropriate way to classify these costs?
A. Fixed Costs
Correct B. Variable Costs
C. Sunk Costs
D. Opportunity Costs

Correct Answer: B

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Question 19
A firm is considering investing in a new warehouse to store its inventory. The firm's current warehouse is fully utilized, and the firm expects to increase its sales by 20% in the next year. If the firm's current warehouse has a capacity of 10,000 units and the firm expects to sell 12,000 units in the next year, what is the minimum capacity required for the new warehouse?
A. 10,000 units
B. 12,000 units
C. 15,000 units
Correct D. 20,000 units

Correct Answer: D

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Question 20
A company is considering implementing a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs
B. Improved quality control
C. Increased flexibility
Correct D. All of the above

Correct Answer: D

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Question 21
The concept of specialization in production is closely related to the idea of division of labor. Which of the following is a key benefit of specialization in production?
Correct A. Increased productivity
B. Improved quality control
C. Reduced production costs
D. Enhanced innovation

Correct Answer: A

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Question 22
A company is considering two different marketing strategies: a push strategy and a pull strategy. Which of the following is a key characteristic of a pull strategy?
Correct A. Focus on creating awareness and generating interest among potential customers
B. Focus on building relationships with existing customers
C. Focus on reducing production costs
D. Focus on increasing sales volume

Correct Answer: A

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Question 23
A bank is considering two different investment options: a high-risk, high-return investment and a low-risk, low-return investment. Which of the following is a key consideration for the bank?
A. The potential return on investment
Correct B. The level of risk involved
C. The liquidity of the investment
D. The tax implications of the investment

Correct Answer: B

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Question 24
A company is considering implementing a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs
B. Improved quality control
Correct C. Increased flexibility in responding to changes in demand
D. Enhanced innovation

Correct Answer: C

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Question 25
A company is considering implementing a total quality management (TQM) system. Which of the following is a key characteristic of TQM?
A. Focus on reducing production costs
Correct B. Focus on improving quality control
C. Focus on increasing sales volume
D. Focus on enhancing innovation

Correct Answer: B

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