POST UTME RHEMA UNIVERSITY 2018 Commerce | Objective

Are you preparing for POST UTME RHEMA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In the context of home and foreign trade, what is the primary function of the Balance of Payments (BOP) account?
Correct A. To record the flow of goods and services between a country and its trading partners
B. To calculate the value of a country's exports and imports
C. To measure the balance between a country's income and expenditure
D. To determine the value of a country's currency in relation to other currencies

Correct Answer: A

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Question 2
A company is considering investing in a new project. The project's expected cash inflows are ₦1,000,000 in the first year, ₦1,200,000 in the second year, and ₦1,500,000 in the third year. The company's cost of capital is 10%. What is the present value of the project's expected cash inflows?
A. ₦1,200,000
B. ₦1,500,000
Correct C. ₦1,800,000
D. ₦2,000,000

Correct Answer: C

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Question 3
A consumer protection agency has identified a pattern of unfair business practices by a company. The agency has collected evidence of the company's actions and is considering taking legal action. What is the primary purpose of the agency's investigation?
A. To determine the extent of the company's wrongdoing
B. To identify the victims of the company's actions
Correct C. To gather evidence for a potential lawsuit
D. To negotiate a settlement with the company

Correct Answer: C

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Question 4
A company is considering launching a new product. The company's marketing team has developed a marketing plan that includes a budget of ₦500,000 for advertising and a budget of ₦200,000 for promotions. What is the total marketing budget for the product?
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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Question 5
A company is considering outsourcing its logistics operations to a third-party provider. The company's transportation costs are currently ₦1,000,000 per month. The third-party provider has quoted a price of ₦900,000 per month for the same services. What is the potential cost savings for the company?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 6
A company has a policy of paying its employees a 10% bonus on their annual salaries. If an employee's annual salary is ₦1,200,000, what is the total amount the employee will receive at the end of the year, including the bonus?
A. ₦1,320,000
B. ₦1,320,000.00
C. ₦1,320,000.00
Correct D. ₦1,320,000.00

Correct Answer: D

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Question 7
A firm's marketing strategy involves a 20% discount on all products sold during a promotional period. If a customer buys a product that originally costs ₦5,000, how much will the customer pay, including the discount?
A. ₦4,000
B. ₦4,000.00
C. ₦4,000.00
Correct D. ₦4,000.00

Correct Answer: D

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Question 8
A bank offers a 5% interest rate on deposits. If a customer deposits ₦10,000 for one year, what is the total amount the customer will receive at the end of the year, including interest?
A. ₦10,525
B. ₦10,525.00
C. ₦10,525.00
Correct D. ₦10,525.00

Correct Answer: D

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Question 9
A company's profit is calculated as the difference between its revenue and cost. If the company's revenue is ₦1,500,000 and its cost is ₦1,200,000, what is the company's profit?
A. ₦300,000
B. ₦300,000.00
C. ₦300,000.00
Correct D. ₦300,000.00

Correct Answer: D

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Question 10
A firm's marketing strategy involves a 15% discount on all products sold during a promotional period. If a customer buys a product that originally costs ₦8,000, how much will the customer pay, including the discount?
A. ₦6,800
B. ₦6,800.00
C. ₦6,800.00
Correct D. ₦6,800.00

Correct Answer: D

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Question 11
A company is considering two different production methods for its new product. Method A involves a high initial investment but low ongoing costs, while Method B involves low initial investment but high ongoing costs. If the company expects to produce 10,000 units in the first year and 20,000 units in the second year, which production method should it choose if it wants to minimize its total costs?
Correct A. Method A
B. Method B
C. Method C
D. Method D

Correct Answer: A

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Question 12
A firm is considering two different advertising strategies for its new product. Strategy A involves a high upfront cost but low ongoing costs, while Strategy B involves low upfront cost but high ongoing costs. If the firm expects to sell 10,000 units in the first year and 20,000 units in the second year, which advertising strategy should it choose if it wants to maximize its total revenue?
A. Strategy A
Correct B. Strategy B
C. Strategy C
D. Strategy D

Correct Answer: B

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Question 13
A company is considering two different distribution channels for its new product. Channel A involves a high upfront cost but low ongoing costs, while Channel B involves low upfront cost but high ongoing costs. If the company expects to sell 10,000 units in the first year and 20,000 units in the second year, which distribution channel should it choose if it wants to minimize its total costs?
Correct A. Channel A
B. Channel B
C. Channel C
D. Channel D

Correct Answer: A

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Question 14
A firm is considering two different pricing strategies for its new product. Strategy A involves a high price but low demand, while Strategy B involves a low price but high demand. If the firm expects to sell 10,000 units in the first year and 20,000 units in the second year, which pricing strategy should it choose if it wants to maximize its total revenue?
A. Strategy A
Correct B. Strategy B
C. Strategy C
D. Strategy D

Correct Answer: B

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Question 15
A company is considering two different inventory management systems for its new product. System A involves a high upfront cost but low ongoing costs, while System B involves low upfront cost but high ongoing costs. If the company expects to sell 10,000 units in the first year and 20,000 units in the second year, which inventory management system should it choose if it wants to minimize its total costs?
Correct A. System A
B. System B
C. System C
D. System D

Correct Answer: A

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Question 16
In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing marginal opportunity cost. What is the reason for this downward slope?
A. The law of diminishing marginal returns
Correct B. The law of increasing marginal opportunity cost
C. The law of supply and demand
D. The law of diminishing marginal utility

Correct Answer: B

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Question 17
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to produce 16 units of output, and the wage rate is 10 per hour, and the rental rate is 20 per unit of capital, what is the minimum cost of production?
A. 160
Correct B. 240
C. 320
D. 400

Correct Answer: B

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Question 18
A firm is considering two different modes of transportation: trucking and rail. The cost of trucking is 100 per ton, and the cost of rail is 80 per ton. If the firm wants to transport 1000 tons of goods, and the demand for the goods is perfectly inelastic, what is the minimum cost of transportation?
A. 80,000
Correct B. 100,000
C. 120,000
D. 140,000

Correct Answer: B

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Question 19
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two different goods. If the consumer's budget constraint is given by 2x + 3y = 12, and the prices of the two goods are 2 and 3 respectively, what is the consumer's optimal bundle of goods?
Correct A. (2, 2)
B. (4, 0)
C. (0, 4)
D. (3, 3)

Correct Answer: A

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Question 20
A firm is considering two different modes of production: labor-intensive and capital-intensive. The labor-intensive mode requires 2 workers and produces 100 units of output, while the capital-intensive mode requires 100 of capital and produces 120 units of output. If the wage rate is 20 per hour, and the rental rate is 20 per unit of capital, what is the minimum cost of production?
A. 400
Correct B. 600
C. 800
D. 1000

Correct Answer: B

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Question 21
Under the Consumer Protection Act, what is the primary responsibility of the Consumer Protection Council?
A. To regulate the activities of businesses
Correct B. To protect the rights of consumers
C. To promote fair competition among businesses
D. To provide consumer education and awareness

Correct Answer: B

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Question 22
A company is registered under the Companies and Allied Matters Act. What is the minimum number of directors required for the company?
A. 1
Correct B. 2
C. 3
D. 4

Correct Answer: B

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Question 23
A sole trader is required to keep records of all financial transactions. What is the purpose of these records?
A. To calculate tax liability
Correct B. To prepare financial statements
C. To keep track of business expenses
D. To identify areas of inefficiency

Correct Answer: B

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Question 24
A company is planning to launch a new product. What is the primary goal of market research in this context?
A. To identify potential competitors
Correct B. To determine market demand
C. To develop a marketing strategy
D. To create a product prototype

Correct Answer: B

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Question 25
A business is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased competition
Correct B. Access to new markets
C. Reduced production costs
D. Improved product quality

Correct Answer: B

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