POST UTME IGBINEDION UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses a third-party logistics provider to transport its goods. The logistics provider is responsible for ensuring that the goods are delivered on time and in good condition. However, the logistics provider fails to deliver the goods on time, resulting in a loss of business for the company. Which of the following transport laws is most relevant to this situation?
A. Carriage of Goods by Sea Act
B. Carriage of Goods by Air Act
C. International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading
D. Uniform Customs and Practice for Documentary Credits
Question 2
A company exports goods worth ₦10,000,000 to a foreign country. If the exchange rate is 1 USD = ₦500, what is the value of the exports in USD?
A. ₦20,000,000
B. ₦25,000,000
C. ₦30,000,000
D. ₦35,000,000
Question 3
A company is considering the introduction of a new product line. The product requires a significant investment in production facilities and marketing. Which of the following is a key consideration for the company in its decision-making process?
A. The potential return on investment
B. The impact on the company's market share
C. The effect on the company's cash flow
D. The influence on the company's organizational structure
Question 4
A company has a production process that involves the following steps: mixing, heating, and packaging. If the company wants to increase production by 20% without changing the existing equipment, what is the minimum number of additional workers required?
A. 10
B. 12
C. 15
D. 18
Question 5
A sole trader business has a profit of ₦200,000 and a loss of ₦50,000 in two consecutive years. What is the net profit?
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 6
A firm is considering the use of a total quality management (TQM) approach. Which of the following is a key principle of TQM?
A. Continuous improvement
B. Customer satisfaction
C. Employee involvement
D. All of the above
Question 7
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?
A. Nigeria producing cotton and importing textiles
B. Nigeria producing textiles and importing cotton
C. Nigeria producing both cotton and textiles
D. Nigeria producing neither cotton nor textiles
Question 8
A company purchases an insurance policy to protect against losses due to natural disasters. However, the insurance policy has a high deductible, which the company must pay out of pocket before the insurance company will cover any losses. Which of the following insurance and risk management principles is most relevant to this situation?
A. Deductible
B. Co-insurance
C. Excess
D. Self-insurance
Question 9
A warehouse has a storage capacity of 10,000 units. If the warehouse is currently 70% full, and 500 new units are received, what is the new percentage of capacity?
A. 60%
B. 65%
C. 70%
D. 75%
Question 10
A company has a production cost of ₦100,000 and a selling price of ₦150,000. If the company sells 500 units of the product, what is the profit?
A. ₦250,000
B. ₦375,000
C. ₦500,000
D. ₦750,000
Question 11
A firm's break-even point is the point at which its total revenue equals its total fixed and variable costs. If a firm's total fixed costs are ₦100,000 and its variable costs are ₦50 per unit, and it sells its product at ₦100 per unit, what is the break-even point in units?
A. 1000 units
B. 2000 units
C. 5000 units
D. 10,000 units
Question 12
A company is considering two different production methods for its new product. Method A requires an initial investment of ₦1,500,000 and produces 10,000 units per year, while Method B requires an initial investment of ₦2,000,000 and produces 15,000 units per year. If the company expects to sell each unit for ₦250, which production method should it choose?
A. Method A
B. Method B
C. Both methods are equally profitable
D. Neither method is profitable
Question 13
A policyholder purchases a life insurance policy with a premium of ₦50,000 per annum. The policy pays a benefit of ₦1,000,000 in the event of the policyholder's death. If the policyholder dies after 5 years, what is the total benefit paid to the beneficiary?
A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000
Question 14
A company has a checking account with a bank that offers a low-interest rate on deposits. However, the bank also charges a monthly maintenance fee for the account. Which of the following banking and financial institutions principles is most relevant to this situation?
A. Interest Rate
B. Fees
C. Minimum Balance
D. Compound Interest
Question 15
A firm is considering the introduction of a new product line. The production manager has estimated that the cost of producing the product will be ₦100 per unit in the first year, increasing by 15% each year for the next 5 years. If the company wants to minimize its costs, which of the following production strategies should it adopt?
A. Increase the production level by 10% each year
B. Decrease the production level by 10% each year
C. Maintain the same production level throughout the 5-year period
D. Increase the production level by 20% in the first year and maintain it at that level for the next 4 years

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