POST UTME CALEB UNIVERSITY 2020 Commerce | Objective

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Question 1
A firm's supply chain is a network of activities that create value for the customer. Which of the following is a type of supply chain risk?
A. Operational Risk
B. Strategic Risk
C. Financial Risk
D. Environmental Risk
Question 2
A firm is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦5,000 per kilometer, while the cost of transporting goods by rail is ₦3,000 per kilometer. If the firm needs to transport goods over a distance of 200 kilometers, what is the total cost of transportation by road and rail, respectively?
A. ₦1,000,000 (road), ₦600,000 (rail)
B. ₦1,000,000 (rail), ₦600,000 (road)
C. ₦1,200,000 (road), ₦800,000 (rail)
D. ₦1,200,000 (rail), ₦800,000 (road)
Question 3
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to manage the money supply in the economy. What is the primary objective of OMO in the context of monetary policy?
A. To reduce the money supply in the economy
B. To increase the money supply in the economy
C. To control inflation
D. To stabilize the exchange rate
Question 4
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
A. The business is not entitled to limited liability.
B. The business is not entitled to issue shares.
C. The business is not entitled to sue or be sued in its own name.
D. The business is not entitled to pay taxes.
Question 5
A firm is considering exporting its product to the European market. The firm has determined that the exchange rate between the Nigerian naira and the Euro is 1:1.5. If the firm sells its product for ₦1,000 in Nigeria, what is the equivalent price in Euros?
A. €666.67
B. €500
C. €750
D. €1,000
Question 6
A company is considering the use of just-in-time inventory management. What is the primary benefit of this approach?
A. Reduced inventory costs
B. Improved product quality
C. Increased efficiency in production
D. Enhanced customer satisfaction
Question 7
A company's insurance policy has a deductible of ₦10,000. If the company incurs a loss of ₦50,000, what is the amount the insurance company pays?
A. ₦40,000
B. ₦30,000
C. ₦20,000
D. ₦10,000
Question 8
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is the primary goal of this strategy?
A. To increase brand awareness
B. To generate leads
C. To build customer loyalty
D. To reduce costs
Question 9
A company is considering the introduction of a new product line. What type of production specialization would be most appropriate?
A. Vertical specialization
B. Horizontal specialization
C. Product specialization
D. Process specialization
Question 10
A company's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary goal of a USP?
A. To increase market share
B. To reduce production costs
C. To create a unique selling proposition
D. To improve customer satisfaction
Question 11
A firm is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦1.5 million and has a variable cost of ₦200 per unit. Process B requires an initial investment of ₦2 million and has a variable cost of ₦150 per unit. If the firm produces 10,000 units, what is the total cost of production for each process?
A. Process A: ₦2.5 million, Process B: ₦2.8 million
B. Process A: ₦2.8 million, Process B: ₦2.5 million
C. Process A: ₦3.2 million, Process B: ₦2.2 million
D. Process A: ₦2.2 million, Process B: ₦3.2 million
Question 12
A company has a policy of paying a 10% dividend on its shares. If the company has 10,000 shares outstanding and the dividend per share is ₦5, what is the total amount paid out in dividends?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 13
A firm is considering importing a raw material from the Asian market. The firm has determined that the cost of transportation from Asia to Nigeria is ₦500 per unit. If the firm imports 10,000 units, what is the total transportation cost?
A. ₦5 million
B. ₦5.5 million
C. ₦6 million
D. ₦6.5 million
Question 14
In the context of insurance and risk management, what is the primary function of reinsurance?
A. To reduce the risk of loss for the policyholder
B. To increase the premium paid by the policyholder
C. To transfer risk from the insurer to the reinsurer
D. To provide additional coverage for the policyholder
Question 15
A company is considering launching a new product in the Nigerian market. The company has conducted market research and has determined that the demand for the product is elastic. What is the implication of this finding for the company's pricing strategy?
A. The company should set a high price for the product
B. The company should set a low price for the product
C. The company should use a penetration pricing strategy
D. The company should use a skimming pricing strategy

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