POST UTME BELLS UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering the expansion of its operations into a new market. The company's management team has identified several potential markets, but the team is unsure which market to choose. What is the key factor that the management team should consider when making this decision?
A. The size of the potential market.
B. The level of competition in the potential market.
C. The company's resources and capabilities.
D. The potential market's growth rate.
Question 2
A company has a capital structure consisting of 60% equity and 40% debt. If the company's cost of equity is 12% and the cost of debt is 6%, what is the company's weighted average cost of capital (WACC)?
A. 8%
B. 10%
C. 12%
D. 15%
Question 3
A firm is considering the use of a supply chain management (SCM) approach to improve its operations. Which of the following is a key benefit of SCM?
A. Improved supply chain visibility and reduced lead times
B. Increased efficiency and reduced costs
C. Enhanced customer service and improved delivery times
D. Improved product quality and reduced defects
Question 4
A firm is considering the introduction of a new product. The product has a high demand, but the production costs are high. The firm's marketing manager suggests that the product be priced at a premium to maximize profits. What is the potential benefit of this strategy?
A. The product may be more competitive in the market.
B. The product may appeal more to the target market.
C. The product may be more profitable.
D. The product may be more sustainable.
Question 5
A consumer is considering purchasing a product that has a price of ₦500 and a quality rating of 8 out of 10. However, the consumer is also considering purchasing a different product that has a price of ₦600 and a quality rating of 9 out of 10. Using the concept of consumer surplus, which product should the consumer choose?
A. The product with a price of ₦500
B. The product with a price of ₦600
C. Both products are equally desirable
D. Neither product is desirable
Question 6
A firm's decision to adopt a new technology is influenced by the potential benefits of increased productivity and reduced costs. However, the adoption of this technology also poses a risk of job displacement for some employees. Which of the following is a key consideration for the firm in making this decision?
A. The potential impact on employee morale and job satisfaction
B. The potential impact on the firm's reputation and brand image
C. The potential impact on the firm's bottom line and profitability
D. The potential impact on the firm's ability to compete in the market
Question 7
A company's financial statements show a net income of ₦500 million and a total assets of ₦2 billion. What is the company's return on assets (ROA) ratio?
A. 0.25
B. 0.50
C. 0.75
D. 1.00
Question 8
A firm is considering the use of a just-in-time inventory system. Which of the following is a key benefit of this system?
A. Reduced inventory costs and improved cash flow
B. Improved product quality and reduced defects
C. Increased efficiency and reduced lead times
D. Enhanced customer service and improved delivery times
Question 9
A firm is considering the introduction of a new product. The product has a high fixed cost, but a low variable cost. What type of market structure is this firm likely to operate in?
A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. Oligopoly
Question 10
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. Which of the following is a characteristic of a USP?
A. It is a statement of the product's features and benefits
B. It is a statement of the product's price and quality
C. It is a statement of the product's target market
D. It is a statement of the product's life cycle
Question 11
A firm produces two products, A and B. The production process for product A requires 2 hours of labor and 1 hour of machine time, while the production process for product B requires 1 hour of labor and 2 hours of machine time. If the firm has 8 hours of labor and 6 hours of machine time available, how many units of product A and product B should the firm produce to maximize profit?
A. 10 units of A, 5 units of B
B. 5 units of A, 10 units of B
C. 15 units of A, 3 units of B
D. 20 units of A, 2 units of B
Question 12
A consumer protection agency receives a complaint about a company's misleading advertising. The agency finds that the company has made false claims about the product's features and benefits. What is the agency's likely course of action?
A. Issue a warning to the company
B. Order the company to stop the advertising campaign
C. Fine the company ₦1 million
D. Sue the company for damages
Question 13
A company is considering the expansion of its operations into a new market. The company's management team has identified several potential markets, but the team is unsure which market to choose. What is the key factor that the management team should consider when making this decision?
A. The size of the potential market.
B. The level of competition in the potential market.
C. The company's resources and capabilities.
D. The potential market's growth rate.
Question 14
In a perfectly competitive market, the law of one price dictates that the price of a commodity will be equal in all markets, assuming that there are no transportation costs or other barriers to trade. However, if transportation costs are significant, the price of the commodity may differ between markets. What is the name of the phenomenon where the price of a commodity differs between markets due to transportation costs?
A. Price Discrimination
B. Transportation Cost Effect
C. Market Failure
D. Supply and Demand Imbalance
Question 15
A company's marketing mix consists of a product with a price of ₦50,000, a promotion with a budget of ₦1 million, and a place with a distribution channel that reaches 80% of the target market. If the company's sales revenue is ₦10 million, what is the company's marketing ROI?
A. 20%
B. 25%
C. 30%
D. 35%

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