Practice post utme rsu commerce 2019 Past Questions

Question 1

The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation:

Correct A. Open Market Operations (OMO), Reserve Requirements, and Moral Suasion

B. Open Market Operations (OMO), Reserve Requirements, and Quantitative Easing

C. Reserve Requirements, Moral Suasion, and Quantitative Easing

D. Open Market Operations (OMO), Moral Suasion, and Fiscal Policy

Correct Answer: A

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Question 2

The following are characteristics of a sole trader business:

Correct A. Unlimited liability, easy to set up, and high level of control

B. Limited liability, easy to set up, and high level of control

C. Unlimited liability, difficult to set up, and low level of control

D. Limited liability, difficult to set up, and low level of control

Correct Answer: A

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Question 3

The following are characteristics of a company:

A. Unlimited liability, easy to set up, and high level of control

Correct B. Limited liability, easy to set up, and high level of control

C. Unlimited liability, difficult to set up, and low level of control

D. Limited liability, difficult to set up, and low level of control

Correct Answer: B

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Question 4

The following are characteristics of a marketing mix:

Correct A. Product, Price, Place, and Promotion

B. Product, Price, Place, and People

C. Product, Price, Place, and Process

D. Product, Price, Place, and Physical Evidence

Correct Answer: A

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Question 5

The following are characteristics of a sole trader business:

Correct A. Unlimited liability, easy to set up, and high level of control

B. Limited liability, easy to set up, and high level of control

C. Unlimited liability, difficult to set up, and low level of control

D. Limited liability, difficult to set up, and low level of control

Correct Answer: A

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Question 6

A company is considering the introduction of a new product line. The product has a high potential for success, but it also has a high risk of failure. The company's management is divided on the issue, with some members advocating for the introduction of the product and others opposing it. The company's financial manager has estimated that the product will require an initial investment of ₦50 million and will generate revenue of ₦20 million per year for the first three years. After the first three years, the revenue is expected to increase by 10% per year. The company's cost of capital is 12% per year. What is the net present value (NPV) of the product line?

A. ₦30 million

B. ₦40 million

Correct C. ₦50 million

D. ₦60 million

Correct Answer: C

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Question 7

A sole trader is considering the purchase of a new piece of equipment for his business. The equipment costs ₦200,000 and will last for 5 years. The sole trader expects to use the equipment for 8 hours a day, 5 days a week. The equipment will save him ₦500 per day in labor costs. What is the payback period of the equipment?

A. 2 years

Correct B. 3 years

C. 4 years

D. 5 years

Correct Answer: B

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Question 8

A company has a policy of paying its employees a bonus of 10% of their salary at the end of each year. The company's financial manager has estimated that the bonus will cost the company ₦1.2 million in the current year. The company's cost of capital is 12% per year. What is the present value of the bonus?

A. ₦1.1 million

Correct B. ₦1.2 million

C. ₦1.3 million

D. ₦1.4 million

Correct Answer: B

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Question 9

A company is considering the introduction of a new product line. The product has a high potential for success, but it also has a high risk of failure. The company's management is divided on the issue, with some members advocating for the introduction of the product and others opposing it. The company's financial manager has estimated that the product will require an initial investment of ₦50 million and will generate revenue of ₦20 million per year for the first three years. After the first three years, the revenue is expected to increase by 10% per year. The company's cost of capital is 12% per year. What is the internal rate of return (IRR) of the product line?

A. 15%

B. 16%

Correct C. 17%

D. 18%

Correct Answer: C

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Question 10

A sole trader is considering the purchase of a new piece of equipment for his business. The equipment costs ₦200,000 and will last for 5 years. The sole trader expects to use the equipment for 8 hours a day, 5 days a week. The equipment will save him ₦500 per day in labor costs. What is the accounting rate of return (ARR) of the equipment?

A. 20%

B. 25%

Correct C. 30%

D. 35%

Correct Answer: C

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Question 11

The concept of 'Just-in-Time' inventory system is most closely related to which of the following?

A. Economic Order Quantity (EOQ)

B. Materials Requirements Planning (MRP)

Correct C. Just-in-Time (JIT) inventory system

D. Total Quality Management (TQM)

Correct Answer: C

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Question 12

A company's marketing strategy is to increase sales by 20% in the next quarter. If the current sales are ₦1,500,000, what is the target sales figure?

Correct A. ₦1,800,000

B. ₦1,600,000

C. ₦1,200,000

D. ₦1,000,000

Correct Answer: A

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Question 13

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor and capital are increased by 10% and 20% respectively, what is the percentage change in output?

A. 10%

B. 20%

Correct C. 30%

D. 40%

Correct Answer: C

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Question 14

A company has a warehouse with a capacity of 10,000 units. The current stock level is 8,000 units. If 2,000 units are received in a shipment, what is the new stock level?

Correct A. 6,000

B. 8,000

C. 10,000

D. 12,000

Correct Answer: A

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Question 15

A firm's marketing mix is given by the 4 Ps: Product, Price, Place, and Promotion. Which of the following is NOT a part of the marketing mix?

A. Product

B. Price

C. Place

Correct D. Profit

Correct Answer: D

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Question 16

A sole trader's business is considered a separate legal entity from its owner. However, this separation is not absolute. Discuss the implications of this separation on the sole trader's liability.

A. The sole trader's liability is limited to the business's assets.

Correct B. The sole trader's liability is unlimited, and they can be held personally responsible for business debts.

C. The sole trader's liability is limited to the business's debts, but they can still be held personally responsible for certain liabilities.

D. The sole trader's liability is not affected by the business's assets or debts.

Correct Answer: B

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Question 17

A company has a profit of ₦1,000,000 and a tax rate of 25%. Calculate the company's tax liability.

Correct A. ₦250,000

B. ₦1,000,000

C. ₦1,250,000

D. ₦1,500,000

Correct Answer: A

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Question 18

A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full. Calculate the number of units that can still be stored in the warehouse.

A. 1,000 units

B. 7,000 units

C. 8,000 units

Correct D. 9,000 units

Correct Answer: D

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Question 19

A company produces two products, A and B. Product A requires 2 hours of labor and 1 hour of machine time, while product B requires 1 hour of labor and 2 hours of machine time. If the company has 8 hours of labor and 6 hours of machine time available, how many units of product A and product B should the company produce to maximize profit?

A. Product A: 4 units, Product B: 2 units

B. Product A: 2 units, Product B: 4 units

Correct C. Product A: 3 units, Product B: 3 units

D. Product A: 1 unit, Product B: 5 units

Correct Answer: C

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Question 20

A consumer protection law requires that all goods sold in a market must be labeled with their country of origin. A company sells goods from three different countries: Country A, Country B, and Country C. If the company sells 100 units of goods from Country A, 50 units from Country B, and 20 units from Country C, how many units of goods must be labeled with their country of origin?

A. 100 units

B. 150 units

Correct C. 200 units

D. 250 units

Correct Answer: C

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Question 21

A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following best describes the primary goal of this strategy?

A. To increase brand awareness

Correct B. To generate leads and drive sales

C. To build customer loyalty and retention

D. To reduce costs and improve efficiency

Correct Answer: B

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Question 22

A sole trader's business is registered with the Corporate Affairs Commission (CAC). What is the primary advantage of this registration?

Correct A. Limited liability protection

B. Tax benefits and deductions

C. Access to government contracts and tenders

D. Increased credibility and reputation

Correct Answer: A

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Question 23

A foreign trade agreement between two countries involves the exchange of goods and services. What is the primary benefit of this agreement?

A. Increased competition and market share

B. Improved access to new markets and customers

C. Enhanced economic growth and development

Correct D. Reduced trade barriers and tariffs

Correct Answer: D

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Question 24

A commercial bank's primary function is to act as a financial intermediary. What is the primary benefit of this function?

Correct A. Increased liquidity and cash flow

B. Improved risk management and diversification

C. Enhanced creditworthiness and reputation

D. Reduced interest rates and fees

Correct Answer: A

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Question 25

A company's financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). What is the primary benefit of this preparation?

Correct A. Improved transparency and accountability

B. Enhanced credibility and reputation

C. Increased access to capital and funding

D. Reduced risk and liability

Correct Answer: A

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