POST UTME NILE UNIVERSITY 2022 Commerce | Objective

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Question 1
A firm's supply chain management involves the coordination of activities across the entire value chain. Which of the following is a correct example of supply chain management?
A. Managing the production process
B. Coordinating the logistics of raw materials
C. Managing the distribution of finished goods
D. All of the above
Question 2
A firm is considering the introduction of a new product. The product has a high fixed cost of ₦1,000,000 and a variable cost of ₦150 per unit. The selling price of the product is ₦250 per unit. If the firm expects to sell 8,000 units, what is the minimum price at which the firm must sell the product to break even?
A. ₦2,000
B. ₦2,250
C. ₦2,500
D. ₦2,750
Question 3
A company is considering two different modes of transportation to deliver its products: road and rail. The cost of transporting goods by road is ₦50 per kilometer, while the cost of transporting goods by rail is ₦30 per kilometer. If the company needs to transport goods for 200 kilometers, what will be the total cost of transportation by road and rail?
A. ₦10,000
B. ₦12,000
C. ₦14,000
D. ₦16,000
Question 4
A firm is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased revenue
B. Improved market share
C. Enhanced brand reputation
D. Reduced production costs
Question 5
A company has a warehouse with a capacity of 10,000 units. If it receives a shipment of 5,000 units, what is the new storage capacity?
A. 10,000 units
B. 15,000 units
C. 20,000 units
D. 25,000 units
Question 6
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?
A. Nigeria producing textiles and importing food
B. Nigeria producing food and importing textiles
C. Nigeria producing both textiles and food
D. Nigeria producing neither textiles nor food
Question 7
A consumer purchases a product from a retailer for ₦10,000. The product is defective and the consumer returns it to the retailer, who offers a refund of ₦8,000. The consumer is also entitled to a compensation of ₦2,000 for the inconvenience caused. Calculate the total amount the consumer will receive.
A. ₦10,000
B. ₦8,000
C. ₦10,000 + ₦2,000
D. ₦8,000 + ₦2,000
Question 8
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are 16 and 9 respectively, what is the firm's output?
A. 32
B. 64
C. 128
D. 256
Question 9
A company has a production function of Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the company wants to increase its output by 50%, what is the required increase in labor and capital?
A. 25% increase in labor and 25% increase in capital
B. 50% increase in labor and 50% increase in capital
C. 75% increase in labor and 75% increase in capital
D. 100% increase in labor and 100% increase in capital
Question 10
A company's articles of association specify that the company's profits will be distributed among its shareholders in the ratio 3:2:1. If the company's total profit is ₦120,000, and there are three shareholders, calculate the amount each shareholder will receive.
A. ₦18,000
B. ₦24,000
C. ₦30,000
D. ₦36,000
Question 11
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's revenue is 1,000 naira, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 5
Question 12
A sole trader's business is considered a separate legal entity from its owner. However, in the event of the owner's death, the business will be wound up and the assets distributed according to the owner's will. This is an example of which type of business organization?
A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Cooperative
Question 13
A company has a risk management strategy that involves the use of insurance to mitigate potential losses. Which of the following is an example of a type of insurance that a company might use?
A. Liability Insurance
B. Property Insurance
C. Business Interruption Insurance
D. Worker's Compensation Insurance
Question 14
A country's balance of payments account records all transactions between its residents and non-residents. Which of the following is a correct example of a balance of payments account?
A. Current account
B. Capital account
C. Financial account
D. All of the above
Question 15
A company has a sole trader business structure. The company's accountant has prepared a balance sheet that shows the company's assets, liabilities, and equity. The balance sheet is as follows: Assets: ₦100,000, Liabilities: ₦50,000, Equity: ₦50,000 What is the company's return on equity (ROE) for the year?
A. 100%
B. 50%
C. 25%
D. 0%

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