POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's financial statements are prepared using the accrual accounting method. What is the primary benefit of this method?
A. Improved cash flow management
B. Enhanced financial reporting
C. Better matching of revenues and expenses
D. Increased tax savings
Question 2
A company is considering two different marketing channels to reach its target audience. Channel A has a higher fixed cost but a lower variable cost, while Channel B has a lower fixed cost but a higher variable cost. Which channel should the company choose if it expects to sell 100 units?
A. Channel A
B. Channel B
C. Both channels are equally profitable
D. Neither channel is profitable
Question 3
A company is considering launching a new product in the Nigerian market. What type of advertising strategy would be most effective for this purpose?
A. Print advertising
B. Electronic advertising
C. Direct marketing
D. Public relations
Question 4
A bank's decision to increase interest rates on savings accounts may have a ripple effect on the entire economy. Which of the following is a likely consequence of this action?
A. Increased consumer spending
B. Reduced inflation
C. Decreased economic growth
D. Increased business investment
Question 5
A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment of ₦10 million, but it is expected to generate ₦20 million in revenue per year for 5 years. Strategy B involves a low initial investment of ₦2 million, but it is expected to generate ₦15 million in revenue per year for 3 years. Which strategy should the company choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable
Question 6
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). Which of the following is a consequence of this?
A. The sole trader is not liable for any debts incurred by the business.
B. The sole trader's business is not entitled to open a corporate bank account.
C. The sole trader's business is not required to file annual returns with the CAC.
D. The sole trader's business is not eligible for tax deductions.
Question 7
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares to the public, how much will the company receive?
A. ₦200,000
B. ₦400,000
C. ₦600,000
D. ₦800,000
Question 8
A firm is considering two different business units: a sole trade and a company. Which business unit is more likely to result in higher tax liabilities?
A. The sole trade
B. The company
C. Both business units are equally likely to result in higher tax liabilities
D. Neither business unit is likely to result in higher tax liabilities
Question 9
A firm's marketing mix involves the 4 Ps: product, price, promotion, and place. Which of the following is NOT one of the 4 Ps?
A. Product
B. Price
C. Promotion
D. Packaging
Question 10
A consumer purchases a product with a price of ₦1,500. If the consumer pays a 10% sales tax, how much will the consumer pay in total?
A. ₦1,650
B. ₦1,700
C. ₦1,750
D. ₦1,800
Question 11
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of labor hours, and H is the number of hours of capital used. If the firm wants to produce 16 units of output, and it has 4 labor hours available, how many hours of capital should it use?
A. 4
B. 8
C. 16
D. 32
Question 12
A sole trader is considering expanding their business by hiring additional staff. What type of business organization would be most suitable for this purpose?
A. Partnership
B. Limited company
C. Sole trader
D. Cooperative society
Question 13
A firm's supply chain involves the movement of goods from raw materials to end customers. Which of the following is a type of supply chain risk?
A. Operational risk
B. Financial risk
C. Strategic risk
D. Reputational risk
Question 14
A company's insurance policy covers damages to its property in the event of a natural disaster. Which of the following is a likely type of insurance policy?
A. Liability insurance
B. Property insurance
C. Business interruption insurance
D. Workers' compensation insurance
Question 15
A company is considering two different modes of transportation for its goods: road transport and rail transport. Which mode of transportation is more likely to result in lower transportation costs?
A. Road transport
B. Rail transport
C. Both modes of transportation are equally likely to result in lower transportation costs
D. Neither mode of transportation is likely to result in lower transportation costs

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