POST UTME NOUN 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's insurance policy has a deductible of ₦10,000. If it makes a claim of ₦50,000, what is the amount the insurance company will pay?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 2
A company's financial statements show a net income of ₦100,000 and a total assets of ₦500,000. What is the return on assets (ROA) of the company?
A. 10%
B. 15%
C. 20%
D. 25%
Question 3
A bank's primary function is to act as a
A. Central bank
B. Commercial bank
C. Investment bank
D. Merchant bank
Question 4
A company is considering the introduction of a new logistics system. The system is expected to reduce costs and improve efficiency, but it also poses a risk to the company's reputation. Which of the following is the most appropriate decision for the company?
A. To proceed with the introduction of the system
B. To conduct a thorough risk assessment
C. To abandon the project due to the risk
D. To seek the advice of a consultant
Question 5
A bank is considering the introduction of a new credit card product. The product is expected to generate significant revenue, but it also poses a risk to the bank's reputation. Which of the following is the most appropriate decision for the bank?
A. To proceed with the introduction of the product
B. To conduct a thorough risk assessment
C. To abandon the project due to the risk
D. To seek the advice of a regulator
Question 6
A firm's cost of capital is 10% per annum. If it invests in a project with a 12% return, what is the expected increase in the firm's wealth?
A. 2%
B. 5%
C. 8%
D. 10%
Question 7
A sole trader has been operating a business for several years. The business has been profitable, but the sole trader has been experiencing difficulty in managing the business's finances. What is the appropriate action for the sole trader to take?
A. Hire an accountant
B. Take out a loan
C. Sell the business
D. Continue to manage the finances alone
Question 8
A firm's insurance policy has a deductible of ₦5,000. The firm makes a claim of ₦20,000. What amount will the firm receive from the insurance company?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 9
A company has two production lines, A and B. Line A produces 80 units of a product per hour, while line B produces 120 units per hour. If the company operates for 8 hours a day, what is the total number of units produced by both lines in a day?
A. 640 units
B. 960 units
C. 1280 units
D. 1920 units
Question 10
A company has been using a particular transportation method to deliver its products. However, the company has been experiencing difficulty in meeting its delivery deadlines. What is the appropriate action for the company to take?
A. Invest in new transportation equipment
B. Hire more drivers
C. Outsource delivery to a third-party company
D. Continue to use the current transportation method
Question 11
A company is considering the introduction of a new marketing campaign. The campaign is expected to generate ₥1 million in revenue in the first year, with a growth rate of 15% per annum for the next three years. What is the present value of the expected cash flows from the campaign, assuming a discount rate of 10%?
A. ₦1,200,000
B. ₦2,500,000
C. ₦3,800,000
D. ₦4,500,000
Question 12
A consumer protection agency has received complaints about a company's unfair business practices. The agency has gathered evidence that the company has been engaging in price-fixing, which is a violation of consumer protection laws. What is the appropriate action for the agency to take?
A. File a lawsuit against the company
B. Issue a warning to the company
C. Conduct an investigation into the company's practices
D. Neglect the complaint
Question 13
In a perfectly competitive market, the supply curve is perfectly elastic. What is the implication of this for the firm's profit-maximizing output?
A. The firm will produce at the minimum point of the average cost curve.
B. The firm will produce at the point where the marginal revenue curve intersects the marginal cost curve.
C. The firm will produce at the maximum point of the average revenue curve.
D. The firm will produce at the minimum point of the average revenue curve.
Question 14
A company's sole trader is considering expanding its operations to a new location. However, the new location has a high crime rate, which may affect the company's assets. What type of risk is the company facing?
A. Operational risk
B. Strategic risk
C. Financial risk
D. Compliance risk
Question 15
A consumer protection agency is considering the introduction of a new regulation to protect consumers from unfair business practices. The regulation is expected to generate ₥0.5 million in revenue in the first year, with a growth rate of 12% per annum for the next three years. What is the present value of the expected cash flows from the regulation, assuming a discount rate of 8%?
A. ₦1,000,000
B. ₦2,200,000
C. ₦3,500,000
D. ₦4,800,000

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