POST UTME NOUN 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering investing in a new project. The project has a net present value (NPV) of ₦1,500,000 and a payback period of 6 years. What is the primary disadvantage of this project?
A. The project has a high NPV.
B. The project has a long payback period.
C. The project has a high return on investment (ROI).
D. The project has a low risk.
Question 2
A company has two warehouses, A and B, with capacities of 500 and 300 units, respectively. Warehouse A has a storage cost of ₦5 per unit, while Warehouse B has a storage cost of ₦7 per unit. If the company has 1200 units to store, how much will it cost to store all the units in Warehouse B and the remaining units in Warehouse A?
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 3
A company is considering investing in a new project. The project has a net present value (NPV) of ₦2,000,000 and a payback period of 8 years. What is the primary advantage of this project?
A. The project has a high NPV.
B. The project has a short payback period.
C. The project has a high return on investment (ROI).
D. The project has a low risk.
Question 4
A company is considering outsourcing its production to a foreign country. The company has a comparative advantage in producing goods X and Y. What is the primary benefit of outsourcing production?
A. The company can produce goods X and Y at a lower cost.
B. The company can produce goods X and Y at a higher quality.
C. The company can specialize in producing goods X and Y.
D. The company can reduce its labor costs.
Question 5
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what price should it charge?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 6
A company has two warehouses, A and B, with capacities of 500 and 300 units, respectively. Warehouse A has a storage cost of ₦5 per unit, while Warehouse B has a storage cost of ₦7 per unit. If the company has 1200 units to store, how much will it cost to store all the units in Warehouse A and the remaining units in Warehouse B?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 7
A company's cost function is given by C(x) = 50 + 20x + 3x^2, where x is the number of units produced. What is the average cost function?
A. 50 + 20x + 3x^2
B. 50 + 10x + 3x^2
C. 50 + 20x + 6x^2
D. 50 + 10x + 6x^2
Question 8
A company's articles of association may be amended to change the company's business objectives. Which of the following is a valid reason for amending the articles of association?
A. To increase the company's share capital.
B. To change the company's business objectives.
C. To appoint a new director.
D. To dissolve the company.
Question 9
A warehouse manager is responsible for maintaining accurate inventory records. Which of the following is a key principle of inventory management?
A. First-in, first-out (FIFO) inventory management.
B. Last-in, first-out (LIFO) inventory management.
C. Economic order quantity (EOQ) inventory management.
D. Just-in-time (JIT) inventory management.
Question 10
A company's memorandum of association is a document that outlines the company's objectives and powers. Discuss the importance of this document in the context of consumer protection.
A. It provides a clear understanding of the company's objectives and powers, which is essential for consumer protection.
B. It is a mere formality and has no significant impact on consumer protection.
C. It is a confidential document and not publicly available, which makes it irrelevant to consumer protection.
D. It is a document that outlines the company's liabilities and responsibilities, which is not relevant to consumer protection.
Question 11
A marketing manager is responsible for developing a marketing strategy to increase sales. Which of the following is a key element of a marketing strategy?
A. Market research and analysis.
B. Product development and design.
C. Pricing and distribution strategies.
D. Advertising and promotion campaigns.
Question 12
A company has two export markets, A and B, with demand functions given by P_A = 100 - 2Q_A and P_B = 150 - 3Q_B. If the company produces 100 units and sells 50 units in market A, how much will it receive in revenue from market B?
A. ₦7,500
B. ₦10,000
C. ₦12,500
D. ₦15,000
Question 13
A company is considering two different distribution channels for a new product. Channel A involves selling the product directly to consumers through a company-owned retail store, while Channel B involves selling the product through a third-party distributor. If the company wants to minimize its costs, which channel should it choose?
A. Channel A
B. Channel B
C. Both channels are equally cost-effective
D. Neither channel is cost-effective
Question 14
A firm is considering investing in a new project. The project has a net present value (NPV) of ₦1,000,000 and a payback period of 5 years. What is the primary advantage of this project?
A. The project has a high NPV.
B. The project has a short payback period.
C. The project has a high return on investment (ROI).
D. The project has a low risk.
Question 15
A sole trader's business is considered a separate legal entity from its owner. Discuss this statement in the context of consumer protection.
A. True, as the business is a separate entity with its own rights and liabilities.
B. False, as the business is an extension of the owner's personal identity.
C. Partially true, as the business has some separate rights but is still subject to the owner's control.
D. False, as the business is not a separate entity and is solely responsible for the owner's actions.

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