Practice post utme ims u commerce 2025 Past Questions

Question 1

In a just-in-time (JIT) inventory system, what is the primary goal of the reorder point?

Correct A. To minimize inventory holding costs

B. To maximize stock levels

C. To reduce lead times

D. To optimize order quantities

Correct Answer: A

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Question 2

A company has a production capacity of 1000 units per day. If the demand rate is 800 units per day, what is the maximum number of days the company can maintain a safety stock of 200 units?

A. 5 days

Correct B. 10 days

C. 15 days

D. 20 days

Correct Answer: B

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Question 3

A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If a customer deposits ₦100,000, what is the future value of the investment after 5 years?

Correct A. ₦161,051.18

B. ₦161,051.19

C. ₦161,051.20

D. ₦161,051.21

Correct Answer: A

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Question 4

A company uses a marketing mix of 4Ps (Product, Price, Place, Promotion) to promote its product. Which of the following is NOT a part of the marketing mix?

A. Product

B. Price

C. Place

Correct D. Packaging

Correct Answer: D

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Question 5

A firm produces two products, A and B, using two inputs, labor and capital. The production function for product A is given by Q_A = 2L^0.5K^0.5, where Q_A is the quantity of product A, L is the amount of labor, and K is the amount of capital. If the firm has 100 units of labor and 200 units of capital, what is the maximum quantity of product A that can be produced?

A. 20 units

B. 30 units

Correct C. 40 units

D. 50 units

Correct Answer: C

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Question 6

A consumer protection agency has been established to regulate the activities of businesses in a particular industry. Which of the following is a key responsibility of this agency?

A. To ensure that businesses comply with all relevant laws and regulations

Correct B. To investigate complaints from consumers and take appropriate action

C. To promote fair competition among businesses in the industry

D. To provide training and education to consumers on how to make informed purchasing decisions

Correct Answer: B

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Question 7

A company is considering the introduction of a new product line. The product line is expected to generate significant revenue, but it also requires a substantial investment in production and marketing. What is the primary consideration for the company in deciding whether to introduce the new product line?

A. The potential return on investment

B. The level of competition in the market

Correct C. The availability of resources and capabilities

D. The potential impact on the company's brand image

Correct Answer: C

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Question 8

A company is facing financial difficulties and is considering the option of liquidating its assets. What is the primary consideration for the company in deciding whether to liquidate?

A. The potential return on investment

B. The level of competition in the market

Correct C. The availability of alternative financing options

D. The potential impact on the company's brand image

Correct Answer: C

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Question 9

A company is considering the introduction of a new product line. The product line is expected to generate significant revenue, but it also requires a substantial investment in production and marketing. What is the primary consideration for the company in deciding whether to introduce the new product line?

A. The potential return on investment

B. The level of competition in the market

Correct C. The availability of resources and capabilities

D. The potential impact on the company's brand image

Correct Answer: C

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Question 10

A company is facing financial difficulties and is considering the option of liquidating its assets. What is the primary consideration for the company in deciding whether to liquidate?

A. The potential return on investment

B. The level of competition in the market

Correct C. The availability of alternative financing options

D. The potential impact on the company's brand image

Correct Answer: C

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Question 11

In a warehouse management system, what is the primary function of the First-In-First-Out (FIFO) inventory valuation method?

A. To minimize inventory costs by valuing items at their current market price

Correct B. To prioritize the oldest items in stock for sale or shipment

C. To maximize storage capacity by stacking items in a specific order

D. To track inventory levels and identify slow-moving items

Correct Answer: B

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Question 12

A company has a cash reserve of ₦1,500,000 and wants to invest in a project with a 10% annual return. How much will the company have after 5 years, assuming compound interest?

Correct A. ₦2,628,919.37

B. ₦2,500,000

C. ₦2,000,000

D. ₦1,500,000

Correct Answer: A

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Question 13

A marketing firm wants to create a social media campaign to increase brand awareness. Which of the following metrics would be the most effective in measuring the campaign's success?

A. Engagement rate

B. Follower growth rate

C. Click-through rate

Correct D. Conversion rate

Correct Answer: D

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Question 14

A company's supply chain involves transporting goods from a factory to a warehouse. What type of transportation mode would be most suitable for this scenario?

A. Air freight

Correct B. Land freight

C. Sea freight

D. Rail freight

Correct Answer: B

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Question 15

A bank offers a 5-year fixed deposit account with a 12% annual interest rate. If a customer deposits ₦500,000, how much will they receive at the end of the term, assuming compound interest?

Correct A. ₦814,169.19

B. ₦800,000

C. ₦750,000

D. ₦500,000

Correct Answer: A

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Question 16

A sole trader's business is considered a separate legal entity from its owner. However, in the event of a lawsuit, the owner's personal assets may be at risk. What is the primary reason for this vulnerability?

A. Limited liability protection

B. Taxation benefits

C. Separate legal entity

Correct D. Personal guarantee

Correct Answer: D

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Question 17

A company's articles of association may include provisions for the appointment of a managing director. What is the primary advantage of having a managing director?

A. Increased decision-making authority

Correct B. Enhanced corporate governance

C. Improved financial management

D. Reduced liability for shareholders

Correct Answer: B

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Question 18

A business may use various modes of transportation to deliver its products. Which mode of transportation is most suitable for transporting perishable goods over long distances?

A. Road transport

B. Rail transport

Correct C. Air transport

D. Sea transport

Correct Answer: C

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Question 19

A company may use various communication channels to interact with its customers. Which channel is most effective for building brand loyalty?

Correct A. Social media

B. Email marketing

C. Customer service hotline

D. Influencer marketing

Correct Answer: A

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Question 20

A business may use various financial instruments to manage its cash flow. Which instrument is most suitable for short-term financing?

Correct A. Commercial paper

B. Bonds

C. Stocks

D. Loans

Correct Answer: A

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Question 21

A firm's production function is given by the equation ( Q = 2L^2 + 3K^2 ), where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm has 4 labor units and 3 capital units, what is the maximum quantity that can be produced?

A. 24

B. 36

Correct C. 48

D. 64

Correct Answer: C

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Question 22

A company's profit function is given by the equation ( \pi = 100x - 20x^2 - 5y^2 , where x is the number of units produced and y is the number of units sold. If the company produces 20 units and sells 15 units, what is the maximum profit?

A. 750

Correct B. 850

C. 950

D. 1050

Correct Answer: B

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Question 23

A bank's interest rate is given by the equation ( r = 5 + 0.02A , where r is the interest rate and A is the amount borrowed. If the bank borrows 1000 units, what is the interest rate?

A. 5

B. 6

Correct C. 7

D. 8

Correct Answer: C

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Question 24

A firm's demand function is given by the equation ( Q = 100 - 2P , where Q is the quantity demanded and P is the price. If the price is 20 units, what is the quantity demanded?

A. 80

B. 90

Correct C. 100

D. 110

Correct Answer: C

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Question 25

A company's supply function is given by the equation ( Q = 50 + 3P , where Q is the quantity supplied and P is the price. If the price is 15 units, what is the quantity supplied?

A. 45

B. 50

Correct C. 55

D. 60

Correct Answer: C

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