POST UTME AFE BABALOLA UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's revenue function is given by R = 100P - 2P^2, where R is revenue and P is price. If the firm increases price by 10%, what is the percentage change in revenue?
A. -5%
B. -10%
C. -15%
D. -20%
Question 2
A consumer is considering purchasing a product that has a price of ₦500 and a quality rating of 8 out of 10. Which of the following is a factor that may influence the consumer's purchasing decision?
A. The product's price and quality rating.
B. The product's brand reputation and warranty.
C. The product's features and benefits.
D. The product's packaging and design.
Question 3
A company is considering outsourcing its production to a foreign country. Which of the following is a potential advantage of outsourcing?
A. Reduced labor costs and increased efficiency.
B. Improved product quality and increased market share.
C. Increased competition and reduced market share.
D. Reduced market share and increased competition.
Question 4
A life insurance policy has a premium of ₦10,000 per annum. If the policyholder dies after 5 years, the insurance company pays a lump sum of ₦200,000. What is the present value of the policy if the interest rate is 8% per annum?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 5
The concept of risk management in insurance is closely related to the idea of
A. hedging
B. speculation
C. diversification
D. reinsurance
Question 6
A company's cost function is given by C = 100L + 200K, where C is cost, L is labor and K is capital. If the company increases labor by 20% and capital by 15%, what is the percentage change in cost?
A. 10%
B. 12%
C. 15%
D. 18%
Question 7
A company's sole trader, Mr. B, has a warehouse with a capacity of 1500 units. He receives an order for 1200 units. If he has already stocked 800 units, how many more units must he order to meet the demand?
A. 200
B. 300
C. 400
D. 500
Question 8
A company's production process involves the transformation of raw materials into finished goods. What is the name of this process?
A. Manufacturing
B. Assembly
C. Packaging
D. Quality Control
Question 9
A company has a business insurance policy that covers against fire damage. The policy has a deductible of ₦100,000. If the company suffers a fire loss of ₦500,000, what is the amount that the insurance company will pay?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 10
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are not protected in case of business debts. What is the name of this type of business structure?
A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Cooperative
Question 11
A warehouse manager is responsible for ensuring that goods are stored and retrieved efficiently. Which of the following is a correct statement regarding the warehouse's inventory management system?
A. The system uses a first-in, first-out (FIFO) inventory rotation method.
B. The system uses a last-in, first-out (LIFO) inventory rotation method.
C. The system uses a just-in-time (JIT) inventory management system.
D. The system uses a perpetual inventory system.
Question 12
The production function is a fundamental concept in the theory of the firm, and it is used to describe the
A. relationship between inputs and outputs
B. relationship between prices and quantities
C. relationship between costs and revenues
D. relationship between profits and losses
Question 13
A company is considering two different marketing strategies for its new product. The first strategy involves a high level of advertising and promotion, while the second strategy involves a low level of advertising and promotion. Which strategy is more likely to be effective in increasing sales?
A. The high level of advertising and promotion is more likely to be effective in increasing sales.
B. The low level of advertising and promotion is more likely to be effective in increasing sales.
C. Both strategies are equally effective in increasing sales.
D. There is not enough information to determine which strategy is more effective.
Question 14
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 100 units of wheat and 100 units of cloth.
Question 15
A company is considering two different marketing strategies for its new product. Which of the following is a key consideration in evaluating the effectiveness of these strategies?
A. The company's target market and customer needs.
B. The company's production costs and profit margins.
C. The company's market share and competitive position.
D. The company's financial resources and budget constraints.

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