POST UTME AL-HIKMAH UNIVERSITY 2023 Commerce | Objective

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Question 1 View Details
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Tax benefits
C. Easy setup and management
Correct D. Flexibility in decision-making

Correct Answer: D

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Question 2 View Details
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares to the public, what is the total amount of share capital raised?
A. ₦200,000
Correct B. ₦400,000
C. ₦600,000
D. ₦800,000

Correct Answer: B

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Question 3 View Details
A consumer purchases a product with a price of ₦5,000. If the consumer pays a 10% sales tax, what is the total amount paid by the consumer?
A. ₦5,500
Correct B. ₦5,600
C. ₦5,700
D. ₦5,800

Correct Answer: B

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Question 4 View Details
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee earns an annual salary of ₦200,000, what is the total amount of bonus paid to the employee?
A. ₦20,000
B. ₦22,000
Correct C. ₦24,000
D. ₦26,000

Correct Answer: C

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Question 5 View Details
A company has a debt of ₦500,000, which is due for repayment in 5 years. If the company wants to repay the debt in equal installments, what is the amount of each installment?
A. ₦100,000
B. ₦80,000
C. ₦60,000
Correct D. ₦50,000

Correct Answer: D

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Question 6 View Details
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to influence the money supply in the economy. What is the primary objective of OMO in the context of monetary policy?
Correct A. To increase the money supply in the economy
B. To decrease the money supply in the economy
C. To maintain the stability of the exchange rate
D. To control inflation

Correct Answer: A

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Question 7 View Details
A firm is considering the production of two goods, X and Y. The production function for good X is given by Qx = 2L + 3K, where L is labor and K is capital. The production function for good Y is given by Qy = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the opportunity cost of producing one more unit of good X?
A. 1 unit of good Y
B. 2 units of good Y
Correct C. 3 units of good Y
D. 4 units of good Y

Correct Answer: C

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Question 8 View Details
A company is considering the expansion of its operations to a new market. The company's current market share is 20%, and the new market is expected to be 10% of the total market. If the company's current revenue is ₦100 million, what is the expected revenue from the new market?
A. ₦10 million
Correct B. ₦20 million
C. ₦30 million
D. ₦40 million

Correct Answer: B

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Question 9 View Details
A consumer is considering the purchase of a product that costs ₦500. The consumer has a budget of ₦1000 and has already spent ₦300 on other products. What is the opportunity cost of purchasing the product?
A. ₦200
Correct B. ₦300
C. ₦400
D. ₦500

Correct Answer: B

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Question 10 View Details
A firm is considering the use of a new technology that will increase its production by 20%. The firm's current production is 100 units, and the new technology will cost ₦100,000. What is the break-even point for the new technology?
A. 50 units
Correct B. 75 units
C. 100 units
D. 125 units

Correct Answer: B

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Question 11 View Details
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of laborers, and H is the amount of capital. If the firm wants to increase its production by 20% while keeping the number of laborers constant at 4, how much capital should it invest?
A. 8
B. 16
Correct C. 32
D. 64

Correct Answer: C

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Question 12 View Details
A company's marketing strategy involves a 20% discount on all products for the first 100 customers. If the original price of a product is ₦500, how much will a customer pay if they are the 50th customer?
Correct A. ₦400
B. ₦450
C. ₦500
D. ₦550

Correct Answer: A

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Question 13 View Details
A firm's revenue function is given by R = 2Q^2 - 5Q + 10, where R is the revenue and Q is the quantity produced. If the firm produces 5 units, what is its revenue?
A. 20
Correct B. 25
C. 30
D. 35

Correct Answer: B

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Question 14 View Details
A bank's interest rate is 10% per annum compounded annually. If a customer deposits ₦10,000 for 2 years, how much will they have after 2 years?
A. ₦11,000
Correct B. ₦11,100
C. ₦11,200
D. ₦11,300

Correct Answer: B

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Question 15 View Details
A firm's cost function is given by C = 2Q^2 + 5Q - 10, where C is the cost and Q is the quantity produced. If the firm produces 3 units, what is its cost?
A. 10
Correct B. 15
C. 20
D. 25

Correct Answer: B

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Question 16 View Details
A company's marketing strategy involves a mix of product, price, place, and promotion. Which of the following is NOT a key element of the product component?
A. Packaging
Correct B. Product life cycle
C. Product positioning
D. Product development

Correct Answer: B

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Question 17 View Details
A consumer protection agency has received a complaint about a company's unfair business practices. Which of the following is a key principle of consumer protection law?
A. Consumer sovereignty
Correct B. Fair competition
C. Consumer information
D. Consumer education

Correct Answer: B

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Question 18 View Details
A company has decided to diversify its product line to reduce its dependence on a single market. Which of the following is a key benefit of diversification?
A. Increased market share
Correct B. Reduced risk
C. Improved profitability
D. Enhanced reputation

Correct Answer: B

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Question 19 View Details
A marketing manager is responsible for developing a marketing plan for a new product launch. Which of the following is a key element of the marketing mix?
A. Product life cycle
B. Product positioning
C. Packaging
Correct D. Product development

Correct Answer: D

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Question 20 View Details
A consumer has filed a complaint against a company for violating the Consumer Protection Act. Which of the following is a key principle of consumer protection law?
A. Consumer sovereignty
Correct B. Fair competition
C. Consumer information
D. Consumer education

Correct Answer: B

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Question 21 View Details
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. It must be consistent with the company's overall business objectives.
B. It must be tailored to the specific needs of the target market.
Correct C. It must be implemented without any budget allocation.
D. It must be evaluated regularly to ensure its effectiveness.

Correct Answer: C

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Question 22 View Details
A firm's revenue is ₦100,000 and its cost of goods sold is ₦80,000. What is the gross profit?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 23 View Details
A company's marketing mix involves a product that is unique in its features and benefits. Which of the following is a characteristic of a unique product?
Correct A. It has a high level of customization.
B. It has a high level of standardization.
C. It has a high level of quality.
D. It has a high level of durability.

Correct Answer: A

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Question 24 View Details
A firm's break-even point is ₦50,000. If its fixed costs are ₦20,000 and its selling price is ₦100,000, what is the contribution margin?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 25 View Details
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is a characteristic of a successful marketing strategy?
Correct A. It must be consistent with the company's overall business objectives.
B. It must be tailored to the specific needs of the target market.
C. It must be implemented without any budget allocation.
D. It must be evaluated regularly to ensure its effectiveness.

Correct Answer: A

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