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 _______.
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?
Question 3
A company uses the pull marketing strategy to promote its products. What is the primary goal of this strategy?
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?
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?
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?
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.
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?
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?
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?
Question 11
A company uses the push marketing strategy to promote its products. What is the primary goal of this strategy?
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?
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?
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?
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?
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