POST UTME BOWEN UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
D. ₦26,500
Question 2
The concept of risk management involves identifying, assessing, and mitigating potential risks to a business's
A. revenue
B. profit
C. cash flow
D. all of the above
Question 3
A warehouse has a capacity of 10,000 units and is currently storing 8,000 units. If 2,000 units are received, what is the new storage capacity?
A. 10,000
B. 12,000
C. 8,000
D. 6,000
Question 4
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?
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
Question 5
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
C. Sharpe Ratio
D. Value-at-Risk
Question 6
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
B. Variable Costs
C. Sunk Costs
D. Opportunity Costs
Question 7
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
B. ₦750
C. ₦1000
D. ₦1250
Question 8
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
C. ₦100,000
D. ₦125,000
Question 9
A firm has a liability of ₦100,000 and has a claim of ₦150,000. What is the net liability?
A. ₦50000
B. ₦100000
C. ₦150000
D. ₦200000
Question 10
A bank has a reserve requirement of 10% and a cash reserve of ₦100,000. If the bank's total deposits are ₦1,000,000, what is the maximum amount of loans it can make?
A. ₦900,000
B. ₦800,000
C. ₦700,000
D. ₦600,000
Question 11
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
D. 20,000 units
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
C. It is environmentally friendly
D. It is competitive
Question 13
A company's Memorandum and Articles of Association are filed with the Corporate Affairs Commission. What is the purpose of the Memorandum?
A. To outline the company's business objectives
B. To specify the company's share capital
C. To define the company's management structure
D. To provide details of the company's directors
Question 14
A sole trader's business is not separate from their personal business, and they are personally responsible for all the business's
A. assets
B. liabilities
C. debts
D. all of the above
Question 15
The concept of comparative advantage suggests that a country should specialize in producing goods for which it has a lower opportunity
A. cost
B. price
C. opportunity cost
D. sunk cost

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