POST UTME UI 2019 Commerce | Objective

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Question 1
A company is considering the introduction of a new product line. The product line is expected to generate additional revenue of ₦1.8 billion per annum, but it will also require an initial investment of ₦6.3 billion. The company's cost of capital is 12% per annum. What is the expected internal rate of return (IRR) of the new product line?
A. 15%
B. 16%
C. 17%
D. 18%
Question 2
A business organization's financial performance is evaluated using various metrics. What is the primary purpose of the return on investment (ROI) ratio?
A. To assess the company's liquidity position
B. To evaluate the effectiveness of the company's investment decisions
C. To compare the company's financial performance with industry benchmarks
D. To identify areas for cost reduction
Question 3
A company's warehouse is designed to store goods in a way that minimizes the risk of damage. Which of the following storage methods is most likely to be used?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. First-In-Last-Out (FILO)
D. Random Storage
Question 4
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 in the domestic market
B. Improved access to new markets and customers
C. Enhanced economic growth and development
D. Reduced trade barriers and tariffs
Question 5
A warehouse manager is responsible for maintaining inventory levels. What is the primary benefit of just-in-time (JIT) inventory management?
A. Reduced storage costs
B. Improved inventory turnover
C. Increased flexibility in production planning
D. Enhanced customer satisfaction
Question 6
A company has a warehouse with a capacity of 10,000 units. If the current stock level is 5,000 units, what is the maximum number of units that can be added to the warehouse without exceeding its capacity?
A. 5000
B. 7500
C. 10000
D. 12500
Question 7
A firm is considering exporting its products to a foreign market. Which of the following is a key advantage of exporting?
A. Increased competition in the domestic market
B. Access to new markets and customers
C. Increased costs associated with exporting
D. Reduced prices of goods and services
Question 8
A firm is considering investing in a new project. Which of the following is a key factor that the firm should consider when making a decision?
A. The expected rate of return on the investment
B. The expected level of risk associated with the investment
C. The expected level of competition in the market
D. The expected level of government support for the investment
Question 9
A consumer is considering the purchase of a new product. The product has a price of ₦5.2 million and is expected to last for 3 years. The consumer's opportunity cost of capital is 20% per annum. What is the present value of the product?
A. ₦4.2 million
B. ₦4.5 million
C. ₦4.8 million
D. ₦5.0 million
Question 10
A firm is considering two investment projects. Project A has a net present value (NPV) of ₦500,000 and a payback period of 5 years. Project B has an NPV of ₦600,000 and a payback period of 4 years. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive
Question 11
The diagram below shows a firm's production possibilities frontier. If the firm decides to produce more of good X, it will have to
A. produce less of good Y
B. produce more of good Y
C. remain at the same level of production
D. increase the price of good X
Question 12
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of the product?
A. ₦100, 1000 units
B. ₦120, 800 units
C. ₦150, 600 units
D. ₦180, 400 units
Question 13
A sole trader business has a turnover of ₦1,000,000 and a profit of ₦200,000. What is the profit margin?
A. 20%
B. 25%
C. 30%
D. 35%
Question 14
The diagram below shows a firm's cost curve. If the firm decides to produce more units of output, its
A. average fixed cost will decrease
B. average variable cost will increase
C. marginal cost will decrease
D. total fixed cost will increase
Question 15
A consumer purchases a product that is defective. Which of the following laws is most likely to protect the consumer?
A. Sales of Goods Act
B. Consumer Protection Act
C. Contract Act
D. Torts Act

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