POST UTME MOUNTAIN TOP UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank's foreign exchange department is responsible for managing the bank's foreign currency transactions. The department uses a system of forward contracts to hedge against exchange rate risks. What is the primary purpose of a forward contract?
A. To speculate on exchange rate movements
B. To hedge against exchange rate risks
C. To invest in foreign currencies
D. To borrow foreign currencies
Question 2
A consumer protection agency receives a complaint about a company's unfair business practices. The agency's investigation reveals that the company has engaged in false advertising, which has caused financial losses to several consumers. What is the most appropriate action for the agency to take?
A. Issue a warning to the company
B. Impose a fine on the company
C. Order the company to cease operations
D. Compensate the affected consumers
Question 3
A sole trader's business is registered under the sole trader's name. What is the primary advantage of this type of business registration?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Flexibility in management
Question 4
A consumer is considering purchasing a product that costs ₦5,000. The consumer has a budget of ₦10,000 and is willing to spend up to 50% of their income on the product. What is the maximum amount the consumer is willing to pay for the product?
A. ₦2,500
B. ₦3,000
C. ₦4,000
D. ₦5,000
Question 5
A warehouse manager is responsible for maintaining inventory levels and ensuring timely delivery of goods to customers. What is the primary benefit of using a just-in-time (JIT) inventory system?
A. Reduced inventory costs
B. Improved supply chain efficiency
C. Increased customer satisfaction
D. Enhanced product quality
Question 6
A firm is considering two different advertising strategies. The first strategy involves a one-time payment of ₦500,000, while the second strategy involves a monthly payment of ₦50,000 for 12 months. If the firm expects to receive a 10% return on investment from the advertising, which strategy is more profitable?
A. The first strategy
B. The second strategy
C. Both strategies are equally profitable
D. Neither strategy is profitable
Question 7
A company has a production function given by the equation Q = 3L * K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company uses 200 units of labor and 900 units of capital, what is the quantity produced?
A. 120
B. 240
C. 360
D. 480
Question 8
A firm has a production function given by the equation Q = 2L^0.5 * K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm uses 100 units of labor and 400 units of capital, what is the quantity produced?
A. 20
B. 40
C. 80
D. 160
Question 9
A company's warehouse is designed to store goods in a way that minimizes the risk of damage and loss. The warehouse uses a system of shelving and racking to store goods, and the company has implemented a system of inventory management to track the movement of goods. What is the primary benefit of this system?
A. To reduce the risk of damage and loss
B. To increase the storage capacity of the warehouse
C. To improve the efficiency of inventory management
D. To reduce the cost of inventory management
Question 10
A company is considering two different production processes for its product. Process A has a fixed cost of ₦10,000 and a variable cost of ₦5 per unit, while Process B has a fixed cost of ₦15,000 and a variable cost of ₦3 per unit. If the selling price of the product is ₦10 per unit, which process should the company choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 11
A company's supply chain involves the transportation of goods from a factory to a warehouse. If the factory is located 200 km away from the warehouse and the company uses a truck that travels at an average speed of 60 km/h, how many hours will it take to transport the goods?
A. 3 hours
B. 4 hours
C. 5 hours
D. 6 hours
Question 12
A company's marketing strategy involves a mix of advertising and public relations. Which of the following best describes the primary goal of advertising in this context?
A. To create brand awareness
B. To generate leads
C. To build customer loyalty
D. To increase sales
Question 13
A company's marketing strategy involves a mix of product, price, place, and promotion. Which of the following is NOT a characteristic of a product-based marketing strategy?
A. High level of customization
B. Low level of customization
C. High level of standardization
D. Low level of standardization
Question 14
A firm has a warehouse with a capacity to store 5,000 units of goods. The firm uses a just-in-time (JIT) inventory system. If 3,000 units of goods are already stored in the warehouse, and 2,000 units of new goods are received, what is the total number of units of goods stored in the warehouse after the new goods are received?
A. 5,000
B. 3,000
C. 5,000
D. 7,000
Question 15
A bank's financial statement shows a net income of ₦1,500,000. If the bank's total assets are ₦10,000,000 and its total liabilities are ₦4,000,000, what is the bank's return on equity (ROE)?
A. 15%
B. 20%
C. 25%
D. 30%

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