Practice post utme bsu commerce 2021 Past Questions

Question 1

In a just-in-time (JIT) inventory system, what is the primary goal of the reorder point?

Correct A. To minimize inventory costs

B. To maximize inventory turnover

C. To reduce lead time

D. To determine the optimal order quantity

Correct Answer: A

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Question 2

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

Correct B. 5,000 units

C. 6,000 units

D. 7,000 units

Correct Answer: B

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Question 3

A consumer purchases a product for ₦10,000. The product has a warranty period of 2 years. If the consumer returns the product after 1 year, what is the refund amount?

A. ₦5,000

Correct B. ₦7,500

C. ₦10,000

D. ₦12,500

Correct Answer: B

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Question 4

A company has a policy of paying a 10% discount to customers who pay within 30 days. If a customer pays ₦50,000 within 30 days, what is the amount paid?

Correct A. ₦45,000

B. ₦50,000

C. ₦55,000

D. ₦60,000

Correct Answer: A

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Question 5

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

Correct C. 3,000 units

D. 4,000 units

Correct Answer: C

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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

Correct 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

Correct Answer: B

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Question 7

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

Correct B. ₦45,000

C. ₦50,000

D. ₦55,000

Correct Answer: B

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Question 8

A firm's cost function is given by C = 2L + 3K. 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

Correct 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

Correct Answer: B

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Question 9

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

Correct B. ₦45,000

C. ₦50,000

D. ₦55,000

Correct Answer: B

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Question 10

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

Correct 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

Correct Answer: B

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Question 11

A company is sued for violating the Consumer Protection Act. The company's defense is that the consumer failed to read the fine print on the contract. Which of the following is the most likely outcome?

Correct A. The court will rule in favor of the consumer.

B. The court will rule in favor of the company.

C. The case will be dismissed due to lack of evidence.

D. The case will be sent back to mediation.

Correct Answer: A

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Question 12

A freight company has a contract with a supplier to transport goods from Lagos to Abuja. The contract specifies that the goods must be delivered within 7 days. However, due to unforeseen circumstances, the goods are delayed by 3 days. What is the freight company's liability?

A. The freight company is fully liable for the delay.

Correct B. The freight company is partially liable for the delay.

C. The freight company is not liable for the delay.

D. The supplier is liable for the delay.

Correct Answer: B

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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?

Correct A. 12,000 units

B. 10,000 units

C. 8,000 units

D. 6,000 units

Correct Answer: A

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Question 14

A company is importing goods from China. The company has a contract with a freight forwarder to transport the goods from Shanghai to Lagos. The contract specifies that the goods must be delivered within 14 days. However, due to unforeseen circumstances, the goods are delayed by 7 days. What is the freight forwarder's liability?

A. The freight forwarder is fully liable for the delay.

Correct B. The freight forwarder is partially liable for the delay.

C. The freight forwarder is not liable for the delay.

D. The supplier is liable for the delay.

Correct Answer: B

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Question 15

A sole trader has a business that sells electronics. The sole trader has a contract with a supplier to purchase 1,000 units of a particular product. However, the supplier only delivers 800 units. What is the sole trader's liability?

A. The sole trader is fully liable for the shortage.

Correct B. The sole trader is partially liable for the shortage.

C. The sole trader is not liable for the shortage.

D. The supplier is liable for the shortage.

Correct Answer: B

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Question 16

The concept of 'caveat emptor' in consumer protection law is best described as:

Correct A. Let the buyer beware

B. Let the seller beware

C. Let the consumer beware

D. Let the government beware

Correct Answer: A

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Question 17

A company's liability for a defective product can be determined by the principle of:

Correct A. Strict Liability

B. Negligence

C. Breach of Warranty

D. Misrepresentation

Correct Answer: A

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Question 18

A warehouse with a capacity of 10,000 square meters has a storage density of 5 units per square meter. If the warehouse is currently storing 20,000 units, what is the percentage of storage capacity utilization?

A. 20%

Correct B. 40%

C. 60%

D. 80%

Correct Answer: B

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Question 19

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

Correct B. ₦275,000

C. ₦300,000

D. ₦325,000

Correct Answer: B

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Question 20

A company is considering a new transportation mode that has a capacity of 100 units per hour. If the company's current transportation mode has a capacity of 50 units per hour, what is the percentage increase in transportation capacity?

A. 20%

B. 40%

Correct C. 60%

D. 80%

Correct Answer: C

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Question 21

A sole trader's business is considered a separate legal entity from its owner. However, in the event of a lawsuit, the owner's personal assets may be at risk. Which of the following best describes this situation?

A. Limited liability

Correct B. Unlimited liability

C. Separate legal entity

D. No liability

Correct Answer: B

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Question 22

A company's articles of association may provide for the issue of preference shares. Which of the following is a characteristic of preference shares?

A. No voting rights

B. No dividend payments

Correct C. Higher dividend payments

D. No capital repayment

Correct Answer: C

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Question 23

A bank's cash reserve ratio is the percentage of deposits that must be held in reserve. Which of the following is a consequence of a bank's cash reserve ratio?

A. Increased lending capacity

Correct B. Decreased lending capacity

C. No effect on lending capacity

D. Increased deposit base

Correct Answer: B

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Question 24

A country's balance of payments account records all transactions between its residents and non-residents. Which of the following is a component of a country's balance of payments account?

A. Current account

B. Capital account

C. Financial account

Correct D. All of the above

Correct Answer: D

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Question 25

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?

Correct A. Reduced stock obsolescence

B. Increased stock turnover

C. Improved stock valuation

D. No effect on stock levels

Correct Answer: A

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