POST UTME NILE UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business has a profit of ₦200,000. If the trader's tax rate is 20%, and the trader's personal income tax is ₦50,000, what is the trader's net profit?
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 2
A firm is considering two different production processes: process A and process B. Process A requires an initial investment of ₦1,000,000 and generates a profit of ₦200,000 per year. Process B requires an initial investment of ₦500,000 and generates a profit of ₦300,000 per year. If the firm has a cost of capital of 10%, which process should the firm choose?
A. Process A
B. Process B
C. Process A
D. Process B
Question 3
A bank's current account balance is ₦500,000. If the bank pays out ₦200,000 in withdrawals and receives ₦150,000 in new deposits, what is the new balance?
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 4
A company's marketing strategy involves creating a new product line to target a specific demographic. The product line is expected to generate a revenue of ₦1.2 billion in the first year. However, the company's financial analysts have estimated that the production costs will be ₦800 million. If the company's profit margin is 25%, what is the expected profit from the new product line?
A. ₦200 million
B. ₦250 million
C. ₦300 million
D. ₦350 million
Question 5
A firm uses the just-in-time (JIT) inventory system. If the firm orders 1,000 units of a product and receives 500 units in the first shipment, what is the reorder point?
A. 500 units
B. 750 units
C. 1,000 units
D. 1,250 units
Question 6
A firm is considering exporting its products to a foreign market. However, the firm is concerned about the potential risks associated with international trade, including political instability, currency fluctuations, and cultural differences. Which of the following strategies would best mitigate these risks?
A. Diversification
B. Risk Management
C. Market Research
D. Export Insurance
Question 7
A marketing manager is developing a marketing strategy for a new product. What is the primary goal of market segmentation?
A. To identify the target market
B. To differentiate the product from competitors
C. To increase market share
D. To reduce production costs
Question 8
A company is considering investing in a new production facility. However, the company is concerned about the potential risks associated with the investment, including market fluctuations, regulatory changes, and technological obsolescence. Which of the following strategies would best mitigate these risks?
A. Diversification
B. Risk Management
C. Market Research
D. Strategic Planning
Question 9
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
C. Sole Trader
D. Limited Liability Partnership
Question 10
A company exports 10,000 units of a product to a foreign country. If the product sells for ₦100 per unit in the foreign market, and the exchange rate is 1 USD = ₦200, what is the total value of the export in USD?
A. ₦1,000,000
B. ₦2,000,000
C. ₦5,000,000
D. ₦10,000,000
Question 11
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy setup and registration
C. Flexibility in decision-making
D. No tax benefits
Question 12
A company's marketing strategy involves creating a new product line to target a specific demographic. The product line is expected to generate a revenue of ₦1.2 billion in the first year. However, the company's financial analysts have estimated that the production costs will be ₦800 million. If the company's profit margin is 25%, what is the expected profit from the new product line?
A. ₦200 million
B. ₦250 million
C. ₦300 million
D. ₦350 million
Question 13
A company has a total of 10,000 shares outstanding, with a par value of ₦10 each. If the company issues 2,000 new shares at a premium of ₦20 per share, what is the total amount of additional capital raised?
A. ₦40,000
B. ₦80,000
C. ₦120,000
D. ₦160,000
Question 14
In a sole proprietorship business, what is the primary advantage of limited liability?
A. Increased tax benefits
B. Reduced financial risk for owners
C. Improved business reputation
D. Enhanced marketing capabilities
Question 15
A company is considering entering the foreign market through exportation. What is the primary advantage of exporting?
A. Increased market share
B. Reduced production costs
C. Access to new markets and customers
D. Improved brand image

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