POST UTME AL-HIKMAH UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's Memorandum of Association and Articles of Association are two primary documents that outline its structure and operations. What is the primary purpose of these documents?
A. To specify the company's ownership structure
B. To outline the company's business operations
C. To detail the company's financial transactions
D. To outline the company's internal management structure and primary objectives
Question 2
A bank's balance sheet is given by the equation ( A = P + I ), where A is the total assets, P is the total liabilities, and I is the total equity. If the bank's total assets are 100 million naira and the total liabilities are 80 million naira, what is the total equity?
A. 10 million naira
B. 20 million naira
C. 30 million naira
D. 40 million naira
Question 3
A firm is considering implementing a new marketing strategy. Which of the following is a key benefit of using social media advertising?
A. Increased brand awareness
B. Improved customer engagement
C. Enhanced customer loyalty
D. All of the above
Question 4
A company is considering launching a new product. The product is a premium version of an existing product, with additional features and a higher price point. What type of marketing strategy is this?
A. Product differentiation
B. Product positioning
C. Product line extension
D. Product cannibalization
Question 5
A company's Memorandum of Association outlines its primary objectives. What is the primary purpose of this document?
A. To outline the company's business operations
B. To define the company's ownership structure
C. To specify the company's primary objectives
D. To detail the company's financial transactions
Question 6
A company purchases an insurance policy to protect against losses due to natural disasters. The policy has a deductible of ₦100,000 and a maximum payout of ₦500,000. If the company suffers a loss of ₦750,000, how much will it receive from the insurance company?
A. ₦250,000
B. ₦350,000
C. ₦450,000
D. ₦550,000
Question 7
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is
A. a vertical line
B. a horizontal line
C. a downward-sloping curve
D. an upward-sloping curve
Question 8
A firm's insurance policy has a deductible of ₦10,000 and a maximum payout of ₦50,000. If the firm incurs a loss of ₦60,000, what is the firm's net payout?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 9
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
B. Tax benefits
C. Flexibility in decision-making
D. Easy to set up
Question 10
A company has a market share of 30% in the industry. If the company wants to increase its market share by 10%, what is the new market share?
A. 40%
B. 35%
C. 30%
D. 25%
Question 11
A company has a policy of paying a 10% dividend to its shareholders. If the company's profit is ₦1,000,000, what is the amount of dividend paid?
A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000
Question 12
A company is considering forming a joint venture with a foreign partner. Which of the following is a key consideration in determining the feasibility of this decision?
A. Cultural differences between the home and foreign partners
B. Economic conditions of the foreign market
C. Political stability of the foreign market
D. Availability of raw materials in the foreign market
Question 13
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 1.5
B. 2.5
C. 3.5
D. 4.5
Question 14
A company's Articles of Association outlines its internal management structure. What is the primary purpose of this document?
A. To specify the company's ownership structure
B. To outline the company's business operations
C. To detail the company's financial transactions
D. To outline the company's internal management structure
Question 15
A firm's marketing strategy involves creating a sense of exclusivity among customers to purchase a product. This strategy is an example of which of the following?
A. Scarcity principle
B. Limited-time offer
C. Free gift with purchase
D. Exclusivity principle

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