POST UTME ABU 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A commercial bank's primary function is to act as a financial intermediary between savers and borrowers. However, this function is often compromised by the bank's desire to maximize profits. Which of the following best describes the bank's dilemma?
A. The bank must balance its desire for profit with its social responsibility to provide financial services to the community.
B. The bank's primary function is to act as a financial intermediary, and it should not prioritize profit maximization.
C. The bank's desire for profit is a necessary evil, as it allows the bank to provide financial services to the community.
D. The bank's primary function is to maximize profits, and it should not be concerned with social responsibility.
Question 2
A company has a warehouse with a capacity to store 1000 units of inventory. The company uses a first-in-first-out (FIFO) inventory system. If 500 units of inventory are received on day 1, 300 units on day 3, and 200 units on day 5, what is the total number of units in the warehouse on day 7?
A. 700
B. 800
C. 900
D. 1000
Question 3
A firm is considering two production methods to produce a product. Method A requires an initial investment of ₦100,000 and has a variable cost of ₦50 per unit. Method B requires an initial investment of ₦150,000 and has a variable cost of ₦30 per unit. If the firm produces 10,000 units, what is the total cost of production for Method A?
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000
Question 4
A firm's marketing mix consists of four Ps: product, price, promotion, and place. Which of the following is NOT a characteristic of a product?
A. It is tangible
B. It is intangible
C. It is a service
D. It is a physical good
Question 5
In a market with perfect competition, the demand curve for a firm's product is given by the equation ( Q = 100 - 2P ). If the firm's marginal revenue (MR) is given by ( MR = 50 - P ), what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary benefit of this strategy?
A. To increase market share
B. To reduce competition
C. To improve brand image
D. To increase customer loyalty
Question 7
A company has a fleet of 10 trucks, each with a capacity to carry 5 tons of cargo. If the company wants to transport 50 tons of cargo, what is the minimum number of trucks required?
A. 5
B. 6
C. 7
D. 8
Question 8
A firm's production function is given by ( Q = 2L^2 + 3K ), where Q is the quantity produced, L is the number of labor hours, and K is the capital stock. If the firm's current capital stock is 100 units and the wage rate is ₦50 per hour, what is the marginal product of labor?
A. 4L
B. 6L
C. 8L
D. 10L
Question 9
A firm is considering two modes of transportation, road and rail, to transport goods from point A to point B. The cost of transportation by road is ₦100 per ton, while the cost by rail is ₦80 per ton. If the firm wants to transport 1000 tons of goods, what is the total cost of transportation by road?
A. ₦100,000
B. ₦80,000
C. ₦120,000
D. ₦140,000
Question 10
A sole trader has been sued by a customer for breach of contract. The sole trader's business is not registered, and the customer is seeking damages for the loss incurred. What is the sole trader's liability?
A. The sole trader is personally liable for the damages, as the business is not registered.
B. The sole trader is not liable, as the business is not registered and the customer has no recourse.
C. The sole trader is liable, but the liability is limited to the amount of the contract.
D. The sole trader is not liable, as the customer has not provided sufficient evidence of the breach.
Question 11
A firm's economic profit is the difference between its
A. total revenue and its total fixed costs
B. total revenue and its total variable costs
C. total revenue and its total fixed and variable costs
D. total revenue and its total contribution margin
Question 12
A company is considering two different trade agreements to export its products to foreign markets. Agreement A involves a tariff of 10% on all exports, while Agreement B involves a tariff of 5% on all exports. However, Agreement B also requires the company to meet certain quality standards. Which agreement is more likely to increase export revenue?
A. Agreement A
B. Agreement B
C. Both agreements will have similar export revenue
D. Neither agreement will increase export revenue
Question 13
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 8,000 units and already has 2,000 units in stock. What is the total number of units in the warehouse?
A. 6,000
B. 8,000
C. 10,000
D. 12,000
Question 14
A firm is considering two different modes of transportation to deliver its products to customers. Mode A involves using a fleet of trucks, while Mode B involves using a combination of trucks and trains. Which mode is more likely to reduce transportation costs?
A. Mode A
B. Mode B
C. Both modes will have similar transportation costs
D. Neither mode will reduce transportation costs
Question 15
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is the primary goal of this strategy?
A. To increase brand awareness
B. To generate leads
C. To drive sales
D. To build customer loyalty

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