POST UTME LEAD CITY UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units and wants to determine the optimal inventory level. What is the optimal inventory level?
A. 5,000 units
B. 7,500 units
C. 10,000 units
D. 12,500 units
Question 2
A firm's supply function is given by P = 2Q + 10. If the firm's output is 5 units, what is the price per unit?
A. 15
B. 20
C. 25
D. 30
Question 3
A company is considering two different marketing strategies for its product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the company's revenue function is R(x) = 100x - 2x^2 and the cost function is C(x) = 20x + 1000, which strategy should the company use?
A. Strategy A
B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable
Question 4
A consumer purchases a product from a retailer, but the product is defective. The consumer sues the retailer for breach of contract. Which of the following is a defense available to the retailer?
A. The consumer failed to inspect the product before purchase
B. The retailer had no knowledge of the defect
C. The consumer is estopped from claiming damages
D. The product was sold as is
Question 5
A country's trade deficit is 100 billion. If the country's GDP is 2 trillion, what is the trade deficit as a percentage of GDP?
A. 0.05%
B. 0.5%
C. 5%
D. 50%
Question 6
A company uses the just-in-time (JIT) inventory system to manage its inventory. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved product quality
C. Increased customer satisfaction
D. Reduced production costs
Question 7
A company's liability for a product defect is governed by the Consumer Protection Act. Which of the following is a key principle of the Act?
A. Strict Liability
B. Product Liability
C. Consumer Protection
D. Manufacturer's Liability
Question 8
A firm specializes in producing only one good. This specialization is an example of which of the following concepts?
A. Division of Labor
B. Economies of Scale
C. Comparative Advantage
D. Opportunity Cost
Question 9
A bank is considering the use of a new financial product that involves the use of derivatives. What are the main advantages of using derivatives in finance?
A. Reduced risk exposure
B. Improved investment returns
C. Enhanced liquidity
D. Increased leverage
Question 10
A company is considering the introduction of a new product into the market. The product has a market share of 20%. If the company increases the price of the product by 15%, what will be the new market share?
A. 15%
B. 18%
C. 20%
D. 22%
Question 11
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?
A. Obtain a Tax Identification Number (TIN)
B. Register with the Corporate Affairs Commission (CAC)
C. Obtain a Business Name Certificate
D. Obtain a Patent for the business name
Question 12
A company's balance sheet shows that its total assets are ₦5,000,000, its total liabilities are ₦2,000,000, and its equity is ₦3,000,000. What is its debt-to-equity ratio?
A. 0.5
B. 0.67
C. 0.75
D. 1.0
Question 13
A company purchases a life insurance policy for one of its employees. The policy pays a benefit of ₦1 million in the event of the employee's death. What is the premium paid by the company for the policy?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 14
A firm has a policy of maintaining a safety stock of 10% of its total inventory. If the total inventory is 1,000 units, what is the safety stock?
A. 100 units
B. 200 units
C. 500 units
D. 1,000 units
Question 15
A firm is considering two different transportation modes to move its goods from the factory to the warehouse. Mode A costs 100 per unit and takes 3 days to deliver, while Mode B costs 150 per unit and takes 2 days to deliver. What is the total cost of transportation for 100 units using Mode A?
A. 10,000
B. 15,000
C. 20,000
D. 25,000

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