POST UTME WELLSPRING UNIVERSITY 2025 Commerce | Objective

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Question 1
In a just-in-time inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
Correct C. To reduce lead times
D. To increase inventory turnover

Correct Answer: C

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Question 2
A company uses a first-in-first-out (FIFO) inventory system. If the oldest item in the warehouse has a cost of ₦1200 and the next oldest item has a cost of ₦1500, what is the total cost of the first two items?
Correct A. ₦2700
B. ₦2700
C. ₦2700
D. ₦2700

Correct Answer: A

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Question 3
A firm's marketing strategy involves creating a brand identity that is consistent across all channels. Which of the following is a key element of this strategy?
A. Product differentiation
B. Segmentation
Correct C. Positioning
D. Packaging

Correct Answer: C

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Question 4
A company's foreign trade policy involves exporting goods to a country with a high tariff rate. To minimize the impact of the tariff, the company should consider using which of the following strategies?
Correct A. Tariff avoidance
B. Tariff evasion
C. Tariff reduction
D. Tariff elimination

Correct Answer: A

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Question 5
A consumer protection agency has received complaints about a company's unfair business practices. Which of the following is a possible remedy for the consumer?
A. Compensation for damages
B. Reimbursement of purchase price
C. Restoration of goods to original condition
Correct D. All of the above

Correct Answer: D

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Question 6
A company has a production function 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 increases its labor input from 100 to 121 units and its capital input from 100 to 121 units, what is the percentage change in the quantity produced?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 7
A firm is considering two investment projects. Project A has a 10% chance of returning 100,000 and a 90% chance of returning 0. Project B has a 20% chance of returning 80,000 and a 80% chance of returning 0. Which project has a higher expected return?
A. Project A
Correct B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return

Correct Answer: B

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Question 8
A company has a portfolio of assets with the following returns: Asset A has a 20% chance of returning 10% and an 80% chance of returning 0%. Asset B has a 30% chance of returning 15% and a 70% chance of returning 0%. What is the expected return of the portfolio?
A. 1.5%
Correct B. 2%
C. 2.5%
D. 3%

Correct Answer: B

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Question 9
A firm is considering two investment projects. Project A has a 10% chance of returning 100,000 and a 90% chance of returning 0. Project B has a 20% chance of returning 80,000 and a 80% chance of returning 0. Which project has a higher expected return?
A. Project A
Correct B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return

Correct Answer: B

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Question 10
A company has a production function 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 increases its labor input from 100 to 121 units and its capital input from 100 to 121 units, what is the percentage change in the quantity produced?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 11
A firm specializes in producing a single good, which is a characteristic of a(n)
Correct A. monopoly
B. oligopoly
C. perfect competition
D. monopsony

Correct Answer: A

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Question 12
The concept of consumer protection is closely related to the principle of
A. caveat emptor
Correct B. caveat venditor
C. consumer sovereignty
D. producer sovereignty

Correct Answer: B

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Question 13
A bank's primary function is to act as a
Correct A. depository institution
B. credit intermediary
C. investment bank
D. central bank

Correct Answer: A

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Question 14
The concept of specialization is closely related to the idea of
Correct A. comparative advantage
B. absolute advantage
C. opportunity cost
D. diminishing returns

Correct Answer: A

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Question 15
A firm's production function is characterized by the law of
Correct A. diminishing returns
B. increasing returns
C. constant returns
D. decreasing returns

Correct Answer: A

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Question 16
In a perfectly competitive market, the law of supply states that the quantity supplied of a good increases as the price of the good increases, ceteris paribus. However, the law of supply also assumes that the firm is a price-taker. What is the implication of this assumption on the firm's decision-making process?
A. The firm can set its own price for the good.
Correct B. The firm must accept the market price for the good.
C. The firm can influence the market price of the good.
D. The firm can produce any quantity of the good it wants.

Correct Answer: B

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Question 17
A company is considering the introduction of a new product into the market. The product has a high fixed cost of production, but a low variable cost of production. What type of market structure is this product likely to be in?
A. Perfect competition
Correct B. Monopoly
C. Monopolistic competition
D. Oligopoly

Correct Answer: B

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Question 18
A firm is considering the introduction of a new product into the market. The product has a high fixed cost of production, but a low variable cost of production. What type of market structure is this product likely to be in?
A. Perfect competition
Correct B. Monopoly
C. Monopolistic competition
D. Oligopoly

Correct Answer: B

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Question 19
A company is considering the introduction of a new product into the market. The product has a high fixed cost of production, but a low variable cost of production. What type of market structure is this product likely to be in?
A. Perfect competition
Correct B. Monopoly
C. Monopolistic competition
D. Oligopoly

Correct Answer: B

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Question 20
A firm is considering the introduction of a new product into the market. The product has a high fixed cost of production, but a low variable cost of production. What type of market structure is this product likely to be in?
A. Perfect competition
Correct B. Monopoly
C. Monopolistic competition
D. Oligopoly

Correct Answer: B

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Question 21
A company is considering the implementation of a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs
B. Improved product quality
Correct C. Increased production efficiency
D. Enhanced customer service

Correct Answer: C

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Question 22
A sole trader has a business income of ₦1,500,000 and expenses of ₦800,000. What is the profit before tax?
Correct A. ₦700,000
B. ₦1,000,000
C. ₦1,300,000
D. ₦1,500,000

Correct Answer: A

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Question 23
A company has a warehouse with a capacity of 10,000 units. If the current stock level is 8,000 units and the daily demand is 200 units, what is the reorder point?
A. 6,000 units
Correct B. 7,000 units
C. 8,000 units
D. 9,000 units

Correct Answer: B

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Question 24
A consumer purchases a product for ₦5,000 and pays a 5% sales tax. What is the total amount paid?
Correct A. ₦5,250
B. ₦5,200
C. ₦5,000
D. ₦4,750

Correct Answer: A

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Question 25
A company has a business interruption insurance policy with a premium of ₦100,000. If the policy covers a maximum of ₦500,000 in losses, what is the excess?
A. ₦400,000
B. ₦300,000
C. ₦200,000
Correct D. ₦100,000

Correct Answer: D

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