POST UTME CHRISTOPHER UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering investing in a new business venture. The venture involves creating a new product line that requires significant upfront costs. However, the company believes that the potential returns on investment are substantial. What is the primary consideration for the company in terms of risk management?
A. The potential impact on the company's cash flow
B. The potential increase in competition
C. The potential decrease in employee morale
D. The potential increase in production costs
Question 2
A consumer purchases a product online and receives a defective item. The consumer contacts the company's customer service department, but the representative is unable to resolve the issue. What is the consumer's next course of action?
A. File a complaint with the Federal Trade Commission (FTC)
B. Seek a refund from the company
C. Contact the company's CEO directly
D. Post a negative review on social media
Question 3
A company issues a 5-year bond with a face value of ₦10,000,000 and a coupon rate of 8%. If the market rate is 10%, what is the present value of the bond?
A. ₦8,000,000
B. ₦9,000,000
C. ₦10,000,000
D. ₦11,000,000
Question 4
A consumer purchases a product from a company and discovers that it is defective. The consumer contacts the company's customer service department, but the representative is unable to resolve the issue. What is the consumer's next course of action?
A. File a complaint with the Federal Trade Commission (FTC)
B. Seek a refund from the company
C. Contact the company's CEO directly
D. Post a negative review on social media
Question 5
A company purchases a 3-year insurance policy with a premium of ₦200,000. If the probability of a loss is 0.05, what is the expected value of the insurance policy?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 6
A firm's cost function is given by C = 2L + 3K. If the firm's current labor and capital inputs are L = 4 and K = 6, respectively, what is the firm's current cost?
A. ₦30
B. ₦36
C. ₦42
D. ₦48
Question 7
A company has a fleet of 10 vehicles, each with an annual insurance premium of ₦50,000. If the company's risk manager wants to determine the total insurance cost for the next 5 years, calculate the total insurance cost.
A. ₦2,500,000
B. ₦2,750,000
C. ₦3,000,000
D. ₦3,250,000
Question 8
A company is considering the production of a new product. The company has identified three possible production methods: A, B, and C. Method A requires an initial investment of ₦10 million and produces 100 units per day. Method B requires an initial investment of ₦5 million and produces 50 units per day. Method C requires an initial investment of ₦15 million and produces 150 units per day. Which method should the company choose if it wants to maximize its profit?
A. Method A
B. Method B
C. Method C
D. Method D
Question 9
The Consumer Protection Act of 1999 provides for the protection of consumers in Nigeria. Which of the following is a fundamental right of consumers under this Act?
A. The right to choose between different products and services
B. The right to be informed about the quality and safety of products and services
C. The right to be protected against unfair or deceptive business practices
D. The right to be compensated for any loss or damage suffered as a result of a breach of contract
Question 10
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the new percentage of the warehouse that is full?
A. 40%
B. 50%
C. 60%
D. 70%
Question 11
A bank's cash reserve ratio is 10%. If the bank has a total deposit of ₦10,000,000, how much cash must it keep in reserve?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 12
A company is considering the use of a new transportation mode to deliver its products. The company has identified two possible transportation modes: Mode A and Mode B. Mode A has a transportation cost of ₦5 per unit and a delivery time of 3 days. Mode B has a transportation cost of ₦10 per unit and a delivery time of 2 days. Which mode should the company choose if it wants to minimize its transportation cost?
A. Mode A
B. Mode B
C. Both modes
D. Neither mode
Question 13
A company's Memorandum and Articles of Association are filed with the Corporate Affairs Commission (CAC). What is the purpose of these documents?
A. To register the company
B. To obtain a business license
C. To outline the company's objectives and structure
D. To appoint directors
Question 14
A firm's 'Return on Investment' (ROI) is a measure of its profitability. What is the formula for calculating the ROI?
A. \frac{Net\ Income}{Total\ Assets}
B. \frac{Total\ Assets}{Net\ Income}
C. \frac{Net\ Income - Total\ Assets}{Total\ Assets}
D. \frac{Total\ Assets - Net\ Income}{Total\ Assets}
Question 15
A sole trader has a business income of ₦200,000 and a business expense of ₦150,000. If the sole trader wants to determine the business profit, calculate the business profit.
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000

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