POST UTME IMS U 2020 Commerce | Objective

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Question 1
A company is considering two marketing strategies: Strategy A, which costs ₦1,000,000 and is expected to generate ₦1,500,000 in revenue, and Strategy B, which costs ₦500,000 and is expected to generate ₦750,000 in revenue. Which strategy has a higher return on investment (ROI)?
A. Strategy A
B. Strategy B
C. Both strategies have the same ROI
D. Neither strategy has a positive ROI
Question 2
A marketing manager wants to increase sales by 20% within the next quarter. If the current sales are ₦2,000,000, what is the target sales figure?
A. ₦2,400,000
B. ₦2,200,000
C. ₦2,600,000
D. ₦2,800,000
Question 3
A firm's risk management strategy involves the use of insurance to mitigate potential losses. Which of the following is a key characteristic of insurance?
A. It is a form of investment
B. It is a way to reduce risk
C. It is a way to increase revenue
D. It is a way to reduce costs
Question 4
A company's sole trader has a business that specializes in providing courier services. The sole trader has a fleet of 15 vehicles, each with a capacity of 2 tons. The company charges a flat rate of ₦50,000 per delivery, regardless of the distance. However, the company also offers a discount of 10% for deliveries that are made within a 50km radius. If the company makes 20 deliveries within the 50km radius and 10 deliveries outside the 50km radius, what is the total revenue generated by the company?
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 5
A company's sole trader has a business income of ₦1,500,000 and expenses of ₦800,000. What is the profit before tax?
A. ₦700,000
B. ₦600,000
C. ₦800,000
D. ₦900,000
Question 6
A company's insurance policy has a deductible of ₦50,000. If the company's annual premium is ₦1,200,000, and it pays ₦800,000 in claims, what is the company's expected loss ratio?
A. 0.67
B. 0.75
C. 0.83
D. 0.90
Question 7
A sole trader has a business income of ₦1,200,000 and expenses of ₦600,000. What is the profit before tax?
A. ₦600,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 8
A company's transportation costs are ₦500,000 per month. If the company's revenue is ₦2,000,000 per month, and the company uses a transportation mode that has a variable cost of ₦100 per unit and a fixed cost of ₦50,000, what is the company's marginal cost?
A. ₦100
B. ₦150
C. ₦200
D. ₦250
Question 9
A warehouse has a storage capacity of 10,000 units. If the warehouse is currently 75% full, and 500 units are added to the warehouse every day, how many days will it take to fill the warehouse to capacity?
A. 10
B. 15
C. 20
D. 25
Question 10
A bank's financial statements are audited annually to ensure that they are presented fairly and in accordance with accounting standards. Which of the following is a key benefit of this audit?
A. To identify any material weaknesses in internal control
B. To ensure that the financial statements are presented fairly and in accordance with accounting standards
C. To provide assurance to stakeholders that the financial statements are reliable
D. To identify any opportunities for cost savings
Question 11
A firm's decision to invest in a new project is influenced by the opportunity cost of the resources required for the project. Which of the following is an example of an opportunity cost?
A. The cost of the resources required for the project
B. The revenue generated by the project
C. The opportunity cost of the resources required for the project
D. The cost of the project's failure
Question 12
A bank is considering introducing a new credit card product. The product will have a 20% annual interest rate and a 2% annual fee. If the customer makes a payment of ₦10,000, how much will they owe after one year?
A. ₦12,000
B. ₦12,200
C. ₦12,400
D. ₦12,600
Question 13
A firm's marketing strategy involves the use of a combination of the product, price, place, and promotion variables. Which of the following is NOT a characteristic of a product variable?
A. Product life cycle
B. Product mix
C. Product positioning
D. Product quality
Question 14
A company is considering investing in a new marketing campaign. The company's current marketing budget is ₦500,000 per month. The new campaign will cost ₦750,000 per month. However, the company expects to increase sales by 20% as a result of the campaign. What is the return on investment (ROI) for the company?
A. 20%
B. 25%
C. 30%
D. 35%
Question 15
A company's marketing strategy involves creating a sense of urgency among its customers. This is an example of which of the following marketing tactics?
A. Scarcity
B. Exclusivity
C. Social Proof
D. Liking

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