POST UTME FUTO 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank offers a loan of ₦1,000,000 at an interest rate of 10% per annum. If the loan is repayable in 5 years, what is the total amount to be repaid?
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 2
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the effect of an increase in the price of a complementary good on the demand for the product?
A. The demand for the product increases.
B. The demand for the product decreases.
C. The demand for the product remains unchanged.
D. The demand for the product becomes perfectly inelastic.
Question 3
A business owner purchases a liability insurance policy to protect against potential lawsuits. What is the primary benefit of this policy?
A. Financial protection against lawsuits
B. Reduced business costs
C. Increased customer trust
D. Improved employee morale
Question 4
A production process is a series of activities involved in transforming raw materials into finished goods. Which of the following is a correct example of a production process?
A. Designing and developing new products.
B. Purchasing raw materials and components.
C. Manufacturing and assembling finished goods.
D. Marketing and selling finished goods to customers.
Question 5
A company produces two products, X and Y. The production process for product X requires 2 hours of labor and 1 hour of machine time, while the production process for product Y requires 1 hour of labor and 2 hours of machine time. If the company has 8 hours of labor and 6 hours of machine time available, how many units of product X and product Y can be produced?
A. 10 units of X and 6 units of Y
B. 8 units of X and 4 units of Y
C. 6 units of X and 2 units of Y
D. 4 units of X and 8 units of Y
Question 6
A company's inventory turnover ratio is 4.5 times per year. If its average inventory level is ₦1,500,000, what is the total cost of goods sold for the year?
A. ₦6,750,000
B. ₦6,375,000
C. ₦6,250,000
D. ₦6,000,000
Question 7
A company is considering implementing a just-in-time inventory management system. Which of the following is a key benefit of this system?
A. Reduced inventory costs
B. Improved customer service
C. Increased efficiency
D. All of the above
Question 8
A company's introduction to commerce involves understanding the concept of supply and demand. What is the law of supply?
A. The higher the price, the higher the quantity supplied
B. The lower the price, the higher the quantity supplied
C. The higher the price, the lower the quantity supplied
D. The lower the price, the lower the quantity supplied
Question 9
A firm's revenue is calculated as the product of the number of units sold and the price per unit. If the firm sold 1000 units at ₦200 each, what is the total revenue?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 10
A bank's financial institution involves managing risk. What is the primary goal of risk management?
A. To maximize profits
B. To minimize losses
C. To maintain liquidity
D. To increase market share
Question 11
A warehouse is a facility used for storing goods before they are shipped to customers. Which of the following is a correct example of a warehouse function?
A. Receiving and inspecting goods before storing them.
B. Storing goods in a secure and climate-controlled environment.
C. Picking and packing goods for shipment to customers.
D. Managing inventory levels and tracking stock movements.
Question 12
A consumer has a budget of ₦1000 and a demand function given by p = 2x - 1. What is the maximum quantity of the good that the consumer can buy?
A. 250
B. 300
C. 350
D. 400
Question 13
A consumer protection agency wants to determine the average price of a product in a market. If the prices of 5 products are ₦100, ₦120, ₦150, ₦180, and ₦200, what is the average price?
A. ₦140
B. ₦150
C. ₦160
D. ₦170
Question 14
The diagram below illustrates a type of insurance policy that is commonly used to cover against the risk of loss or damage to goods during transportation. What is the name of this type of policy?
A. All-Risk Policy
B. Cargo Insurance Policy
C. Marine Insurance Policy
D. Transportation Insurance Policy
Question 15
A firm is considering two different production processes: one that produces 100 units of output per hour with a fixed cost of ₦10,000 and a variable cost of ₦5 per unit, and another that produces 200 units of output per hour with a fixed cost of ₦20,000 and a variable cost of ₦3 per unit. Which production process should the firm choose if it wants to minimize its average cost?
A. The first production process.
B. The second production process.
C. Both production processes have the same average cost.
D. Neither production process has the lowest average cost.

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