POST UTME AFE BABALOLA UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will _______.
A. increase
B. decrease
C. remain constant
D. become elastic
Question 2
A firm's cost function is given by C = 100 + 2Q, where C is the total cost and Q is the quantity produced. If the firm produces 50 units, what is its total cost?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 3
A company uses the pull marketing strategy to promote its products. What is the primary goal of this strategy?
A. To increase brand awareness
B. To build customer relationships
C. To drive sales and revenue
D. To reduce production costs
Question 4
A consumer protection agency is investigating a complaint about a company's unfair trading practices. The company has been accused of engaging in price-fixing with its competitors. Which of the following is a legal consequence of price-fixing in Nigeria?
A. The company must pay a fine of ₦1,000,000
B. The company must refund all payments made by consumers
C. The company must cease all trading activities for 6 months
D. The company must be dissolved
Question 5
A sole trader is a type of business ownership where one person owns and operates the business. What are the primary advantages of being a sole trader?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. Access to external funding
Question 6
A warehouse's inventory turnover ratio is 6 times per year. If the beginning inventory is ₦150,000, what is the total cost of goods sold for the year?
A. ₦900,000
B. ₦1,050,000
C. ₦1,200,000
D. ₦1,350,000
Question 7
A company has a policy of paying its employees a fixed salary plus a bonus based on the company's profits. This type of compensation is an example of a _______ contract.
A. Fixed
B. Variable
C. Frictional
D. Opportunity
Question 8
A consumer protection law requires that all products sold in a particular market must have a minimum warranty period of 2 years. If a company sells a product with a warranty period of 1 year, what is the company's liability under the consumer protection law?
A. The company is liable for any damages or losses incurred by the consumer.
B. The company is not liable for any damages or losses incurred by the consumer.
C. The company is liable for any damages or losses incurred by the consumer, but only for the first year.
D. The company is liable for any damages or losses incurred by the consumer, but only for the remaining warranty period.
Question 9
A company uses the just-in-time (JIT) inventory system to manage its stock levels. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved customer service
C. Increased production efficiency
D. Enhanced supply chain visibility
Question 10
A firm is considering investing in a new project that has a net present value (NPV) of 100,000. The firm's cost of capital is 10%. What is the internal rate of return (IRR) of the project?
A. 10%
B. 12%
C. 15%
D. 18%
Question 11
A company uses the push marketing strategy to promote its products. What is the primary goal of this strategy?
A. To increase brand awareness
B. To build customer relationships
C. To drive sales and revenue
D. To reduce production costs
Question 12
A company has a portfolio of assets that includes stocks, bonds, and real estate. The company's investment manager wants to diversify the portfolio by adding a new asset class. Which of the following asset classes would be a good addition to the portfolio?
A. Commodities
B. Currencies
C. Mutual Funds
D. Private Equity
Question 13
A company's marketing strategy involves creating a new product line to cater to the growing demand for eco-friendly products. The company has identified three potential product lines: A) Biodegradable plastics, B) Reusable water bottles, C) Energy-efficient light bulbs, and D) Organic food products. Which product line is most likely to appeal to environmentally conscious consumers?
A. Biodegradable plastics
B. Reusable water bottles
C. Energy-efficient light bulbs
D. Organic food products
Question 14
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. The consumer's indifference curves are given by the equation U = 2x^0.5y^0.5. What is the optimal bundle of goods that the consumer will choose?
A. (2, 3)
B. (3, 2)
C. (4, 1)
D. (1, 4)
Question 15
A company is considering two different production processes for its new product. Process A has a fixed cost of ₦500,000 and a variable cost of ₦200 per unit. Process B has a fixed cost of ₦750,000 and a variable cost of ₦150 per unit. If the selling price of the product is ₦300 per unit, which process should the company choose to maximize its profit?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

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