POST UTME BOWEN UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following financial statements: Revenue = ₦1,500,000, Cost of Goods Sold = ₦900,000, Gross Profit = ₦600,000, Operating Expenses = ₦200,000, Net Income = ₦400,000. What is the company's Return on Equity (ROE)?
A. 20%
B. 25%
C. 30%
D. 35%
Question 2
A firm's supply chain involves the use of a vendor-managed inventory (VMI) system. What is the primary advantage of this system?
A. Improved inventory accuracy
B. Reduced inventory costs
C. Enhanced supplier-customer relationships
D. Increased flexibility in supply chain management
Question 3
A company limited by shares has a capital of ₦5,000,000, divided into 500,000 ordinary shares of ₦10 each. If the company issues 200,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦20,000,000
B. ₦25,000,000
C. ₦30,000,000
D. ₦35,000,000
Question 4
A firm's supply chain involves the use of a drop shipping arrangement. What is the primary advantage of this arrangement?
A. Improved inventory accuracy
B. Reduced inventory costs
C. Enhanced supplier-customer relationships
D. Increased flexibility in supply chain management
Question 5
A company has a cost function given by C = 2L + 3K, where C is the total cost, L is the labor input, and K is the capital input. If the price of labor increases by 20% and the price of capital remains constant, what will be the effect on the total cost?
A. The total cost will increase by 10%
B. The total cost will decrease by 10%
C. The total cost will remain unchanged
D. The total cost will increase by 20%
Question 6
A company's marketing strategy involves creating a new product line that targets a specific demographic. The company's advertising budget is ₦500 million, and it plans to allocate 30% of this budget to social media advertising. If the company's social media advertising budget is ₦150 million, what is the total marketing budget for the new product line?
A. ₦500 million
B. ₦600 million
C. ₦700 million
D. ₦800 million
Question 7
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units. The warehouse is currently 70% full. What is the total capacity of the warehouse after the new shipment?
A. 8,500 units
B. 9,000 units
C. 9,500 units
D. 10,000 units
Question 8
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA). What is the primary implication of this registration?
A. The sole trader is now a company limited by shares.
B. The sole trader is exempt from paying personal income tax.
C. The sole trader's business is now subject to the provisions of CAMA.
D. The sole trader's business is now a partnership.
Question 9
A firm is considering two investment projects, A and B. Project A has a net present value (NPV) of ₦100,000 and a payback period of 5 years, while project B has an NPV of ₦120,000 and a payback period of 3 years. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive
Question 10
A company has a sole proprietorship business with a capital of ₦200,000. The company has a profit of ₦50,000. What is the owner's equity after the profit is distributed?
A. ₦250,000
B. ₦225,000
C. ₦200,000
D. ₦175,000
Question 11
A consumer protection agency receives a complaint from a customer who purchased a product online. The customer alleges that the product was not as described and was defective. The agency's investigation reveals that the product was indeed defective, but the seller had provided a clear description of the product. What is the agency's likely course of action?
A. Order the seller to refund the customer's money
B. Order the seller to replace the defective product
C. Close the case as the seller provided a clear description of the product
D. Refer the case to the police for further investigation
Question 12
A sole trader, Mr. A, has a business income of ₦1.2 million and expenses of ₦800,000. If he has a capital of ₦300,000, what is his profit?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 13
A company is considering a new marketing strategy that involves partnering with a popular social media influencer. The influencer has a large following and is known for promoting products that align with the company's brand values. However, the company is concerned about the potential risks associated with partnering with an influencer, including the possibility of negative publicity and the potential for the influencer to promote competing products. Which of the following is the most appropriate way for the company to mitigate these risks?
A. Negotiate a contract that includes a non-compete clause
B. Conduct thorough research on the influencer's past promotions and reputation
C. Require the influencer to disclose any potential conflicts of interest
D. Limit the scope of the partnership to a specific product or service
Question 14
A company is considering expanding its operations to a new country. The company has identified several potential locations, but is concerned about the potential risks associated with operating in a new market. Which of the following is the most appropriate way for the company to mitigate these risks?
A. Conduct thorough market research and analysis
B. Establish a local subsidiary or joint venture
C. Partner with a local business or organization
D. Limit the scope of the expansion to a specific product or service
Question 15
A company produces two products, X and Y, using two production processes, A and B. The production costs for X and Y are as follows: X (A) = ₦100, X (B) = ₦120, Y (A) = ₦80, Y (B) = ₦100. If the company produces 100 units of X and 50 units of Y, what is the total production cost?
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000

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