POST UTME UNIBEN 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's return on investment (ROI) is calculated as the ratio of its
A. net income to total assets
B. net income to total equity
C. net income to total liabilities
D. net income to total revenue
Question 2
A company may be wound up by the court if it is just and equitable to do so, under the ______ law.
A. Companies Act
B. Insolvency Act
C. Bankruptcy Act
D. Winding-up Act
Question 3
The Consumer Protection Act of 1999 provides for the protection of consumers against unfair trade practices. Which of the following is NOT a provision of the Act?
A. Penalty for unfair trade practices
B. Compensation for consumers who suffer losses
C. Establishment of consumer courts
D. Prohibition of consumer education
Question 4
A country's inflation rate is given by the equation IR = (P1 - P0)/P0, where IR is the inflation rate, P1 is the current price level, and P0 is the previous price level. If the current price level is 100 and the previous price level is 90, what is the inflation rate?
A. 10%
B. 20%
C. 30%
D. 40%
Question 5
A company's cash flow statement shows the inflows and outflows of its
A. cash and cash equivalents
B. accounts receivable
C. accounts payable
D. inventory
Question 6
A warehouse's inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory level. True or False?
A. True
B. False
C. Depends on the type of inventory
D. Not applicable
Question 7
A warehouse's inventory management system uses the first-in, first-out (FIFO) method to track stock levels. Explain the advantages of this method.
A. It is easy to implement
B. It is accurate
C. It minimizes stock losses
D. It maximizes stock turnover
Question 8
A firm is considering two investment projects, A and B. Project A has a 10% chance of a 20% return, and a 90% chance of a 5% return. Project B has a 20% chance of a 30% return, and an 80% chance of a 2% return. Which project has a higher expected return?
A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return
Question 9
A firm's supply curve is upward-sloping because as the price of its product increases, it becomes more
A. profitable to produce
B. expensive to produce
C. difficult to produce
D. easy to produce
Question 10
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company wants to increase its production by 20%, what percentage increase in labor input is required, ceteris paribus?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A bank's return on equity (ROE) is a measure of its profitability. If a bank's net income is ₦120 million and its total equity is ₦1.2 billion, what is its ROE?
A. 0.10
B. 0.12
C. 0.15
D. 0.20
Question 12
A firm is considering the use of just-in-time (JIT) inventory system. Which of the following is a benefit of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased production capacity
D. Reduced transportation costs
Question 13
A company's cash conversion cycle (CCC) is the time it takes for a company to sell its inventory and collect its accounts receivable. If a company's inventory turnover is 4 times per year and its accounts receivable turnover is 6 times per year, what is its CCC?
A. 60 days
B. 90 days
C. 120 days
D. 180 days
Question 14
A company is experiencing a high level of inventory turnover. Which of the following is a possible cause?
A. High demand for the product
B. Low production costs
C. Inefficient inventory management
D. High inventory levels
Question 15
A firm's break-even point is the point at which its total revenue equals its total fixed and variable costs. What is the break-even point for a firm with a fixed cost of ₦100,000 and a variable cost of ₦50 per unit, if it sells its product for ₦150 per unit?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

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