POST UTME CALEB UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company exports goods worth 100,000 to a foreign country. The exchange rate is 1 USD = 360 Naira. What is the value of the export in Naira?
A. ₦36,000,000
B. ₦36,000,000
C. ₦36,000,000
D. ₦36,000,000
Question 2
A firm is considering the purchase of a new machine that costs ₦1,500,000. The machine is expected to last for 5 years and will reduce the firm's annual operating costs by ₦300,000. The firm's cost of capital is 10% per annum. What is the payback period of the machine?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
Question 3
A company uses a transportation mode that involves the movement of goods by land, sea, and air. What is the primary advantage of this mode?
A. Flexibility in transportation routes
B. Reduced transportation costs
C. Increased speed of delivery
D. Improved security of goods
Question 4
A company is considering entering into a contract with a supplier. Which of the following is a key consideration in this decision?
A. Price
B. Quality
C. Reliability
D. Payment terms
Question 5
A company is considering the introduction of a new product line. The company's management has decided to use the Decision Tree Analysis (DTA) method to determine the feasibility of the new product line. Which of the following is NOT a step in the DTA method?
A. Identify the decision variables
B. Identify the probability distributions
C. Calculate the expected value
D. Calculate the variance
Question 6
A company is considering the introduction of a new product line. The product has a high fixed cost of ₦500,000 and a variable cost of ₦100 per unit. The selling price of the product is ₦150 per unit. If the company expects to sell 10,000 units, what is the minimum price at which the product must be sold to break even?
A. ₦120
B. ₦130
C. ₦140
D. ₦150
Question 7
An insurance company's primary function is to manage risk. Which of the following is a type of insurance?
A. Life insurance
B. Health insurance
C. Property insurance
D. Liability insurance
Question 8
A firm is considering the purchase of a new machine that costs ₦1,500,000. The machine is expected to last for 5 years and will reduce the firm's annual operating costs by ₦300,000. The firm's cost of capital is 10% per annum. What is the net present value (NPV) of the machine?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,100,000
Question 9
In a warehouse, the inventory turnover ratio is calculated as the cost of goods sold divided by the average inventory. What is the formula for this ratio?
A. \frac{COGS}{Average Inventory}
B. \frac{Average Inventory}{COGS}
C. \frac{COGS + Average Inventory}{2}
D. \frac{COGS - Average Inventory}{2}
Question 10
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to regulate the money supply in the economy. Which of the following is NOT a monetary policy tool?
A. Open Market Operations (OMO)
B. Reserve Requirements
C. Fiscal Policy
D. Interest Rate Policy
Question 11
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units. What is the new inventory level?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 12
A consumer protection agency is responsible for enforcing consumer rights. Which of the following is a right of a consumer?
A. The right to return a defective product
B. The right to a refund for a product that does not meet expectations
C. The right to a product that meets the manufacturer's specifications
D. The right to a product that is free from defects
Question 13
A bank's reserve requirement is 10%. If the bank has a deposit of ₦100,000, how much must it keep in reserve?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 14
A company is considering the introduction of a new product line. The product has a high fixed cost of ₦500,000 and a variable cost of ₦100 per unit. The selling price of the product is ₦150 per unit. If the company expects to sell 10,000 units, what is the minimum price at which the product must be sold to break even?
A. ₦120
B. ₦130
C. ₦140
D. ₦150
Question 15
A firm is considering investing in a new project. Which of the following is a key consideration in this decision?
A. Return on investment
B. Break-even analysis
C. Cash flow projections
D. Market research

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