Practice post utme rhema university commerce 2019 Past Questions

Question 1

A company has a stock of 1,000 units, with a value of ₦10,000 per unit. If the company sells 500 units at a discount of 10%, what is the total revenue received by the company?

A. ₦4,500,000

B. ₦5,000,000

C. ₦5,500,000

D. ₦6,000,000

Question 2

A company has a warehouse with a capacity of 5,000 units. If the company receives a shipment of 2,000 units and already has 1,000 units in stock, what is the total capacity of the warehouse?

A. 3,000 units

B. 4,000 units

C. 5,000 units

D. 6,000 units

Question 3

A company has a portfolio of assets with a beta of 1.2. If the market return is 8%, what is the expected return on the portfolio?

A. 6%

B. 8%

C. 10%

D. 12%

Question 4

A company is considering two different distribution channels for its product. Channel A involves a high level of intermediaries and a low level of direct sales, while Channel B involves a low level of intermediaries and a high level of direct sales. Which channel is more likely to be effective in reaching the target market?

A. Channel A, because it involves a high level of intermediaries and a low level of direct sales

B. Channel B, because it involves a low level of intermediaries and a high level of direct sales

C. Channel A, because it involves a low level of intermediaries and a high level of direct sales

D. Channel B, because it involves a high level of intermediaries and a low level of direct sales

Question 5

A company is considering two different advertising strategies for its product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which strategy is more likely to be effective in increasing sales?

A. Strategy A, because it involves a high level of advertising and promotion

B. Strategy B, because it involves a low level of advertising and promotion

C. Strategy A, because it involves a low level of advertising and promotion

D. Strategy B, because it involves a high level of advertising and promotion

Question 6

A company's financial statements include the

A. Balance Sheet

B. Income Statement

C. Cash Flow Statement

D. All of the above

Question 7

A company has a production function given by Q = 100K^0.5L^0.5, where Q is the quantity produced, K is the capital and L is the labor. If the company increases the capital from 100 to 121, by what percentage will the quantity produced increase?

A. 10%

B. 20%

C. 30%

D. 40%

Question 8

A consumer protection agency has been established to regulate the activities of businesses in a particular industry. The agency has the power to investigate complaints, impose fines, and revoke licenses. However, the agency's decision-making process is not transparent, and the public is not aware of the criteria used to determine which businesses to investigate. Which of the following is the most likely consequence of this situation?

A. The agency's lack of transparency will lead to a decrease in public trust in the agency.

B. The agency's lack of transparency will lead to an increase in complaints against businesses.

C. The agency's lack of transparency will lead to a decrease in the number of businesses that are investigated.

D. The agency's lack of transparency will lead to an increase in the number of fines imposed on businesses.

Question 9

A company is considering investing in a new transportation system to reduce its carbon footprint. The system uses a combination of electric and hydrogen fuel cell technology. However, the company is concerned about the high upfront costs of the system. Which of the following is the most likely benefit of investing in this system?

A. Reduced greenhouse gas emissions

B. Increased fuel efficiency

C. Improved air quality

D. Enhanced brand reputation

Question 10

The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to increase the money supply in the economy. What is the primary effect of OMO on the money supply?

A. Increase the reserve requirements of commercial banks

B. Sell government securities to commercial banks

C. Increase the money supply by injecting liquidity into the economy

D. Decrease the interest rate to stimulate borrowing

Question 11

A consumer purchases a product with a price of ₦5,000 and a 10% discount. If the consumer pays with a credit card that charges a 5% interest rate, what is the total amount paid by the consumer?

A. ₦5,250

B. ₦5,375

C. ₦5,500

D. ₦5,625

Question 12

A firm is considering two different pricing strategies for its product. Strategy A involves a high price and a low level of discounts, while Strategy B involves a low price and a high level of discounts. Which strategy is more likely to be effective in increasing sales?

A. Strategy A, because it involves a high price and a low level of discounts

B. Strategy B, because it involves a low price and a high level of discounts

C. Strategy A, because it involves a low price and a high level of discounts

D. Strategy B, because it involves a high price and a low level of discounts

Question 13

A bank's cash reserve ratio is the proportion of its total deposits that it is required to hold in the form of

A. Cash

B. Bonds

C. Loans

D. Investments

Question 14

A firm is considering two different modes of transportation to transport its goods. Mode A costs ₦10,000 per unit and has a probability of 0.8 of being on time. Mode B costs ₦15,000 per unit and has a probability of 0.9 of being on time. Which mode of transportation has a lower expected cost?

A. Mode A

B. Mode B

C. Both modes have the same expected cost

D. Neither mode has a lower expected cost

Question 15

A firm is considering two different production processes for its product. Process A involves a high level of labor and a low level of capital, while Process B involves a low level of labor and a high level of capital. Which process is more likely to be efficient?

A. Process A, because it involves a high level of labor and a low level of capital

B. Process B, because it involves a low level of labor and a high level of capital

C. Process A, because it involves a low level of labor and a high level of capital

D. Process B, because it involves a high level of labor and a low level of capital

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