POST UTME ACHIEVERS UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering entering a new market. The market research indicates that the demand for the product is price-elastic. What is the implication of this for the firm's pricing strategy?
A. The firm should set a high price to maximize profits.
B. The firm should set a low price to increase market share.
C. The firm should use a penetration pricing strategy.
D. The firm should use a skimming pricing strategy.
Question 2
A company exports goods worth ₦5 million to a foreign country. If the exchange rate is 1 USD = ₦500, what is the value of the export in USD?
A. ₦2,500
B. ₦5,000
C. ₦10,000
D. ₦20,000
Question 3
A company has a capital structure consisting of 60% equity and 40% debt. If the company's cost of equity is 12% and the cost of debt is 6%, what is the company's weighted average cost of capital (WACC)?
A. 8%
B. 9%
C. 10%
D. 11%
Question 4
A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.
A. The owner's personal assets are protected from business debts.
B. The owner's personal assets are liable for business debts.
C. The business is liable for the owner's personal debts.
D. The owner's personal debts are not affected by the business.
Question 5
A firm specializes in producing a single product, and its production function is given by the equation ( Q = 100L^0.5K^0.25 ), where Q is the quantity produced, L is labor, and K is capital. If the firm's current labor and capital inputs are 100 units and 400 units, respectively, what is the marginal product of labor?
A. 50
B. 100
C. 200
D. 250
Question 6
A company has two production facilities, A and B, with the following production functions: ( Q_A = 100L_A^0.5K_A^0.25 ) and ( Q_B = 200L_B^0.5K_B^0.25 ). If the firm's current labor and capital inputs for facility A are 100 units and 400 units, respectively, and for facility B are 50 units and 200 units, respectively, what is the marginal product of capital for facility B?
A. 12.5
B. 25
C. 50
D. 100
Question 7
A company's financial statements show a net income of ₦15 million in 2020. However, the company's cash balance decreased by ₦3 million during the same period. What is the most likely explanation for this discrepancy?
A. The company sold assets to raise cash.
B. The company borrowed money to finance its operations.
C. The company had a decrease in accounts payable.
D. The company had a decrease in accounts receivable.
Question 8
A consumer is considering purchasing a product with a 2-year warranty. Which of the following is a key consideration in determining the value of the warranty?
A. Product price
B. Warranty duration
C. Product reliability
D. Expected maintenance costs
Question 9
A company has a policy of paying its employees a fixed salary of ₦50,000 per month, plus a bonus of 10% of their monthly sales. If an employee's monthly sales are ₦200,000, what is their total monthly income?
A. ₦60,000
B. ₦65,000
C. ₦70,000
D. ₦75,000
Question 10
A consumer protection law requires businesses to provide a 30-day cooling-off period for customers to return goods. Which of the following is a consequence of this law?
A. Increased sales for businesses
B. Reduced returns for customers
C. Protection for consumers from defective goods
D. Increased costs for businesses
Question 11
A company is considering the implementation of a new inventory management system. Which of the following is a key benefit of such a system?
A. Improved customer satisfaction
B. Reduced inventory costs
C. Increased sales
D. Enhanced supply chain visibility
Question 12
A company has a warehouse with a capacity of 10,000 units. The current stock level is 8,000 units. If the company receives a shipment of 2,000 units, what is the new stock level?
A. 6000
B. 8000
C. 10000
D. 12000
Question 13
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Tax benefits
Question 14
A company is considering investing in a new project that has a net present value (NPV) of ₦1,000,000. If the company's cost of capital is 10%, what is the present value of the project?
A. ₦900,000
B. ₦1,000,000
C. ₦1,100,000
D. ₦1,200,000
Question 15
A company has a warehouse with a capacity to store 300 units of products. If he has 250 units of products in stock and wants to order more, what is the minimum number of units he should order to maximize his storage capacity?
A. 50
B. 100
C. 150
D. 200

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: