Practice post utme ims u commerce 2019 Past Questions

Question 1

A company's sole trader has a warehouse with a capacity of 5000 units. If the company sells 3000 units in a quarter, what is the percentage of the warehouse's capacity used?

A. 25%

Correct B. 30%

C. 35%

D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A firm's financial statements show that its total assets increased by 15% in the last year. If its total liabilities increased by 12% during the same period, what is the percentage increase in its equity?

A. 2%

B. 3%

Correct C. 4%

D. 5%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A company's insurance policy has a deductible of ₦5000. If it pays ₦15000 for a claim, what is the amount paid by the insurance company?

A. ₦10000

Correct B. ₦11000

C. ₦12000

D. ₦13000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A firm's stock control system uses a first-in-first-out (FIFO) inventory method. If it has 100 units of stock with a cost of ₦100 each, and it sells 20 units, what is the total cost of the stock sold?

A. ₦2000

Correct B. ₦2200

C. ₦2400

D. ₦2600

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A company's sole trader has a warehouse with a capacity of 5000 units. If the company sells 3000 units in a quarter, what is the percentage of the warehouse's capacity used?

A. 25%

Correct B. 30%

C. 35%

D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

A company's sole trader is considering expanding its business to include a new product line. The new product line has a higher profit margin, but it also requires a significant investment in new equipment and training. Which of the following financial ratios would be most useful in determining whether the company should invest in the new product line?

A. Debt-to-Equity Ratio

Correct B. Return on Investment (ROI)

C. Current Ratio

D. Asset Utilization Ratio

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A firm is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a lower level of advertising and promotion. Which of the following marketing metrics would be most useful in evaluating the effectiveness of Strategy A?

A. Market Share

B. Customer Acquisition Cost (CAC)

Correct C. Return on Ad Spend (ROAS)

D. Customer Lifetime Value (CLV)

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A bank is considering whether to offer a new credit card product to its customers. The new product has a higher interest rate than the bank's existing credit cards, but it also offers a higher credit limit. Which of the following financial metrics would be most useful in evaluating the profitability of the new credit card product?

Correct A. Net Interest Margin (NIM)

B. Return on Assets (ROA)

C. Return on Equity (ROE)

D. Efficiency Ratio

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A company is considering whether to invest in a new logistics system to improve its supply chain efficiency. The new system would require a significant upfront investment, but it would also reduce the company's transportation costs and improve its delivery times. Which of the following financial metrics would be most useful in evaluating the potential return on investment (ROI) of the new logistics system?

A. Payback Period

Correct B. Net Present Value (NPV)

C. Internal Rate of Return (IRR)

D. Break-Even Analysis

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A firm is considering whether to launch a new product in a new market. The new product has a high level of demand, but it also requires a significant investment in marketing and distribution. Which of the following marketing metrics would be most useful in evaluating the potential return on investment (ROI) of the new product launch?

A. Market Share

B. Customer Acquisition Cost (CAC)

C. Return on Ad Spend (ROAS)

Correct D. Customer Lifetime Value (CLV)

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

A company's production function is given by the Cobb-Douglas production function: Q = 10L^0.4K^0.6, where Q is the output, L is labor, and K is capital. If the company wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?

A. 15%

B. 20%

Correct C. 25%

D. 30%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A firm is considering two investment projects. Project A has a 10% chance of generating a profit of ₦100,000 and a 90% chance of generating a profit of ₦50,000. Project B has a 20% chance of generating a profit of ₦150,000 and an 80% chance of generating a profit of ₦20,000. Which project has a higher expected profit?

Correct A. Project A

B. Project B

C. Both projects have the same expected profit

D. Neither project has a higher expected profit

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

A consumer's budget constraint is given by the equation: 2x + 3y = 60, where x and y are the quantities of two goods. If the consumer's income is ₦60 and the price of good x is ₦2, what is the maximum quantity of good y that the consumer can buy?

A. 10 units

Correct B. 15 units

C. 20 units

D. 25 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A firm is considering two production processes. Process A requires an initial investment of ₦100,000 and generates a profit of ₦20,000 per year. Process B requires an initial investment of ₦150,000 and generates a profit of ₦30,000 per year. Which process has a higher net present value (NPV) if the discount rate is 10%?

Correct A. Process A

B. Process B

C. Both processes have the same NPV

D. Neither process has a higher NPV

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

A firm is considering two investment projects. Project A has a 10% chance of generating a profit of ₦100,000 and a 90% chance of generating a profit of ₦50,000. Project B has a 20% chance of generating a profit of ₦150,000 and an 80% chance of generating a profit of ₦20,000. Which project has a higher expected profit?

Correct A. Project A

B. Project B

C. Both projects have the same expected profit

D. Neither project has a higher expected profit

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

A company is considering two marketing strategies: Strategy A involves a high initial investment but generates a steady stream of revenue over time, while Strategy B involves a low initial investment but generates a variable stream of revenue. Which strategy is more likely to be adopted by a company with a high risk tolerance?

A. Strategy A

Correct B. Strategy B

C. Both strategies are equally likely to be adopted

D. Neither strategy is likely to be adopted

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, and the manager wants to add 5,000 new units to the inventory. What is the new storage capacity of the warehouse?

Correct A. 15,000 units

B. 12,500 units

C. 10,000 units

D. 8,750 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A bank offers a 5% interest rate on a 1-year fixed deposit. If a customer deposits ₦10,000, how much interest will the customer earn in 1 year?

Correct A. ₦500

B. ₦500.50

C. ₦500.25

D. ₦500.10

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

A company is considering two business structures: a sole proprietorship and a partnership. Which structure is more suitable for a company with multiple owners?

A. Sole Proprietorship

Correct B. Partnership

C. Both structures are equally suitable

D. Neither structure is suitable

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A transport company offers a 10% discount on a 1-year subscription to its logistics services. If a customer pays ₦10,000 for the subscription, how much will the customer pay after the discount?

Correct A. ₦9,000

B. ₦9,500

C. ₦9,750

D. ₦10,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

A company is considering two different production methods for its new product. Method A involves a higher initial investment but lower production costs, while Method B involves a lower initial investment but higher production costs. If the company expects to produce 10,000 units per year for 5 years, and the market price of the product is ₦200 per unit, which method should the company choose?

Correct A. Method A

B. Method B

C. Method C

D. Method D

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

A firm is considering two different advertising strategies for its new product. Strategy A involves a higher budget but a more targeted approach, while Strategy B involves a lower budget but a more general approach. If the firm expects to sell 5,000 units per year for 3 years, and the market price of the product is ₦150 per unit, which strategy should the firm choose?

Correct A. Strategy A

B. Strategy B

C. Strategy C

D. Strategy D

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A company is considering two different insurance policies for its employees. Policy A involves a higher premium but a higher payout in case of an accident, while Policy B involves a lower premium but a lower payout in case of an accident. If the company expects to have 10 employees working for 5 years, and the average cost of an accident is ₦50,000, which policy should the company choose?

Correct A. Policy A

B. Policy B

C. Policy C

D. Policy D

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

A firm is considering two different production methods for its new product. Method A involves a higher initial investment but lower production costs, while Method B involves a lower initial investment but higher production costs. If the firm expects to produce 5,000 units per year for 3 years, and the market price of the product is ₦100 per unit, which method should the firm choose?

Correct A. Method A

B. Method B

C. Method C

D. Method D

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A company is considering two different advertising strategies for its new product. Strategy A involves a higher budget but a more targeted approach, while Strategy B involves a lower budget but a more general approach. If the company expects to sell 10,000 units per year for 5 years, and the market price of the product is ₦200 per unit, which strategy should the company choose?

Correct A. Strategy A

B. Strategy B

C. Strategy C

D. Strategy D

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME IMS U 2019 Commerce | Objective

Master the Exam!

Help others prepare! Share this practice hub: