POST UTME BSU 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business has been affected by a natural disaster, and the trader is seeking compensation from the government. If the government's compensation scheme provides a maximum payout of ₦500,000, and the trader's losses are estimated to be ₦1,000,000, what is the likely outcome?
A. The trader will receive the full amount of ₦1,000,000
B. The trader will receive ₦500,000
C. The trader will not receive any compensation
D. The trader will receive a partial payout of ₦750,000
Question 2
A company's marketing strategy involves a 20% discount on all products for the first 100 customers. If the original price of the product is ₦500, determine the total revenue generated by the first 100 customers.
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 3
The concept of 'caveat emptor' in consumer protection law is best described as:
A. Let the buyer beware
B. Let the seller beware
C. Let the consumer beware
D. Let the government beware
Question 4
A warehouse's inventory management system uses the first-in-first-out (FIFO) method to track stock levels. Which of the following is a benefit of using the FIFO method?
A. Reduced stock obsolescence
B. Increased stock turnover
C. Improved stock valuation
D. No effect on stock levels
Question 5
A consumer protection agency has received a complaint from a customer who purchased a product online. The customer claims that the product was not as described, and the agency must investigate the matter. If the agency finds that the seller has breached the consumer protection laws, what is the likely outcome?
A. The seller will be fined ₦100,000
B. The seller will be required to refund the customer's money
C. The seller will be banned from selling online
D. The customer will be required to pay the seller's legal fees
Question 6
A firm's production function is given by Q = 2L^0.4K^0.3. If the firm's output is 100 units, and the wage rate is ₦100 per hour, and the rental rate is ₦50 per unit of capital, determine the optimal combination of labor and capital that minimizes the total cost of production.
A. ₦2000, 10 units of labor, 5 units of capital
B. ₦2500, 15 units of labor, 10 units of capital
C. ₦3000, 20 units of labor, 15 units of capital
D. ₦3500, 25 units of labor, 20 units of capital
Question 7
A bank's financial institution has invested in a portfolio of stocks and bonds. The portfolio has a total value of ₦10,000,000, and the bank's investment manager must decide how to allocate the funds. If the manager expects the stock market to rise by 10% in the next year, and the bond market to fall by 5%, what is the expected return on investment?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 8
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units. If the lead time is 5 days, what is the reorder point?
A. 4,000 units
B. 5,000 units
C. 6,000 units
D. 7,000 units
Question 9
A company's Memorandum and Articles of Association are not filed with the Corporate Affairs Commission (CAC). What is the legal implication of this?
A. The company is not entitled to limited liability.
B. The company is not required to file annual returns.
C. The company is not eligible for tax deductions.
D. The company is not subject to regulatory oversight.
Question 10
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units. If the lead time is 5 days, what is the safety stock?
A. 1,000 units
B. 2,000 units
C. 3,000 units
D. 4,000 units
Question 11
A company has a production function given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases labor input from 100 to 121 units, and capital input from 100 to 121 units, by how much will the quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A firm's marketing strategy involves using social media platforms to reach its target audience. The firm's social media manager has identified three potential platforms to use: Facebook, Instagram, and Twitter. Each platform has a different cost structure, and the manager must decide which platform to use based on the firm's budget. If the firm's budget is ₦500,000, and the costs of using each platform are as follows: Facebook (₦150,000), Instagram (₦200,000), and Twitter (₦250,000), which platform should the manager choose?
A. Facebook
B. Instagram
C. Twitter
D. All of the above
Question 13
A warehouse has a storage capacity of 10,000 units. The warehouse is currently storing 8,000 units. If 2,000 more units are received, what is the new storage capacity?
A. 12,000 units
B. 10,000 units
C. 8,000 units
D. 6,000 units
Question 14
A company's financial statements are not audited annually. What is the legal implication of this?
A. The company is not required to file annual returns.
B. The company is not eligible for tax deductions.
C. The company is not subject to regulatory oversight.
D. The company's financial statements are not reliable.
Question 15
A company has a fleet of 50 vehicles, with an average annual mileage of 50,000 kilometers. If the company's insurance policy has a deductible of ₦50,000, what is the total premium for the year?
A. ₦250,000
B. ₦275,000
C. ₦300,000
D. ₦325,000

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