POST UTME FUTO 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank offers a 5-year fixed deposit account with an interest rate of 12% per annum compounded annually. If the principal amount is ₦100,000, what is the amount at the end of the 5-year period?
A. ₦163,922.41
B. ₦164,922.41
C. ₦165,922.41
D. ₦166,922.41
Question 2
A sole trading business has a profit of ₦100,000. If the business owner wants to distribute the profit equally among the employees, what is the amount each employee will receive?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 3
A company uses a transport system to deliver its products. Which of the following is a type of transport system?
A. Road transport
B. Rail transport
C. Air transport
D. Sea transport
Question 4
A company has a warehouse with a capacity of 5,000 units. If the current inventory level is 3,000 units, what is the maximum number of units that can be added to the warehouse?
A. 2,000
B. 3,000
C. 4,000
D. 5,000
Question 5
A company has a production capacity of 10,000 units per month. If the demand for the product is 12,000 units per month, what is the degree of production specialization?
A. 0.8
B. 1.2
C. 1.5
D. 2.0
Question 6
A bank's risk management strategy involves diversification of assets to minimize risk. Which of the following is a type of diversification?
A. Horizontal diversification
B. Vertical diversification
C. Concentration risk
D. Liquidity risk
Question 7
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. It is customer-focused
B. It is cost-effective
C. It is environmentally friendly
D. It is competitive
Question 8
A company's break-even point can be calculated using which of the following formulas?
A. ( ext{Break-Even Point} = rac{ ext{Fixed Costs}}{ ext{Selling Price} - ext{Variable Costs}} )
B. ( ext{Break-Even Point} = rac{ ext{Selling Price} - ext{Variable Costs}}{ ext{Fixed Costs}} )
C. ( ext{Break-Even Point} = rac{ ext{Fixed Costs} + ext{Variable Costs}}{ ext{Selling Price}} )
D. ( ext{Break-Even Point} = rac{ ext{Selling Price} + ext{Variable Costs}}{ ext{Fixed Costs}} )
Question 9
A company's cash flow statement can be prepared using which of the following formats?
A. Direct Method
B. Indirect Method
C. Cash Basis
D. Accrual Basis
Question 10
A firm's financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). What is the primary purpose of GAAP?
A. To provide a framework for financial reporting
B. To ensure compliance with tax laws
C. To reduce the cost of financial reporting
D. To increase the complexity of financial reporting
Question 11
A company has a capital of ₦500,000, divided into 5,000 shares of ₦100 each. If the company issues 2,000 shares at a premium of ₦20 per share, what is the total amount received from the issue of shares?
A. ₦400,000
B. ₦420,000
C. ₦440,000
D. ₦460,000
Question 12
The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?
A. To regulate consumer goods and services
B. To protect consumer rights and interests
C. To promote consumer education and awareness
D. To investigate consumer complaints and disputes
Question 13
A company uses a marketing mix of product, price, place, and promotion to reach its target market. What is the primary goal of this marketing mix?
A. To increase sales revenue
B. To build brand awareness
C. To establish a competitive advantage
D. To reduce production costs
Question 14
A firm's marketing mix involves the 4 Ps: product, price, promotion, and place. What is the primary benefit of using the 4 Ps framework?
A. To increase market share
B. To improve brand recognition
C. To enhance customer loyalty
D. To provide a comprehensive framework for marketing decisions
Question 15
In a perfectly competitive market, the supply curve is upward-sloping because
A. Firms are willing to supply more at a higher price
B. Firms are willing to supply less at a lower price
C. Firms are willing to supply more at a lower price
D. Firms are willing to supply less at a higher price

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