Practice post utme rsu commerce 2019 Past Questions

Question 1

A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which of the following is a potential advantage of Strategy A?

A. Increased market share

B. Reduced production costs

C. Improved brand recognition

D. Increased competition

Question 2

The following are characteristics of a sole trader business:

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

Question 3

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

C. ₦50 million

D. ₦60 million

Question 4

A firm is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦100 per unit, and the cost of transporting goods by rail is ₦80 per unit. However, the rail company charges a fixed fee of ₦5000 per shipment. If the firm wants to transport 100 units of goods, how much will it save by using the rail mode of transportation?

A. ₦2000

B. ₦3000

C. ₦4000

D. ₦5000

Question 5

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

A. Limited liability protection

B. Tax benefits and deductions

C. Access to government contracts and tenders

D. Increased credibility and reputation

Question 6

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%

C. 30%

D. 40%

Question 7

A firm's demand function is given by Q = 100 - 2P. If the firm's supply function is given by Q = 2P - 50, find the equilibrium price and quantity.

A. P = 25, Q = 50

B. P = 50, Q = 100

C. P = 75, Q = 150

D. P = 100, Q = 200

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

B. ₦1.2 million

C. ₦1.3 million

D. ₦1.4 million

Question 9

A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment of ₦100,000 and a monthly advertising budget of ₦50,000. Strategy B involves a low initial investment of ₦20,000 and a monthly advertising budget of ₦75,000. If the company expects to sell 100 units of the product per month at ₦500 per unit, which strategy would result in higher profits?

A. Strategy A

B. Strategy B

C. Both strategies would result in the same profit

D. Neither strategy would result in a profit

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 payback period of the equipment?

A. 2 years

B. 3 years

C. 4 years

D. 5 years

Question 11

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

D. 9,000 units

Question 12

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

B. To generate leads and drive sales

C. To build customer loyalty and retention

D. To reduce costs and improve efficiency

Question 13

A firm is considering entering a new market. Which of the following is a potential risk associated with entering a new market?

A. Increased competition

B. Reduced production costs

C. Uncertainty about market demand

D. Improved brand recognition

Question 14

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%

C. 30%

D. 35%

Question 15

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

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

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

POST UTME RSU 2019 Commerce | Objective

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