POST UTME BOWEN UNIVERSITY 2022 Commerce | Objective

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Question 1
A firm's insurance policy covers losses due to fire, theft, and natural disasters. Which of the following is NOT a type of risk that the firm is exposed to?
A. Operational risk
B. Strategic risk
C. Financial risk
D. Compliance risk
Question 2
A bank's primary function is to act as a financial intermediary by providing which of the following services?
A. Accepting Deposits
B. Granting Loans
C. Investing in Stocks
D. Providing Insurance
Question 3
A firm is considering two different pricing strategies: a penetration pricing strategy and a skimming pricing strategy. Which of the following is a key difference between the two strategies?
A. Penetration pricing strategy involves setting a high initial price to maximize profits, while skimming pricing strategy involves setting a low initial price to attract customers.
B. Penetration pricing strategy involves setting a low initial price to attract customers, while skimming pricing strategy involves setting a high initial price to maximize profits.
C. Penetration pricing strategy is more effective than skimming pricing strategy.
D. Skimming pricing strategy is more effective than penetration pricing strategy.
Question 4
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?
A. Flexibility
B. Adaptability
C. Consistency
D. Unpredictability
Question 5
A consumer's indifference curve is given by the equation (U = 2x_1 + x_2), where (U) is the level of utility, (x_1) is the quantity of good 1, and (x_2) is the quantity of good 2. If the consumer's income is 100, the price of good 1 is 10, and the price of good 2 is 20, what is the consumer's optimal bundle?
A. (x_1 = 20, x_2 = 10)
B. (x_1 = 10, x_2 = 20)
C. (x_1 = 15, x_2 = 15)
D. (x_1 = 25, x_2 = 5)
Question 6
A company's insurance policy covers losses due to fire, theft, and natural disasters. What type of insurance policy is this?
A. Fire insurance
B. Theft insurance
C. All-risk insurance
D. Comprehensive insurance
Question 7
A consumer's budget constraint is given by the equation (P_1x_1 + P_2x_2 = I), where (P_1) and (P_2) are the prices of two goods, (x_1) and (x_2) are the quantities consumed, and (I) is the consumer's income. If the consumer's income is 100, the price of good 1 is 10, and the price of good 2 is 20, what is the consumer's budget constraint?
A. (10x_1 + 20x_2 = 100)
B. (10x_1 + 20x_2 = 200)
C. (10x_1 + 20x_2 = 300)
D. (10x_1 + 20x_2 = 400)
Question 8
A company's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary goal of a USP?
A. To increase market share
B. To reduce production costs
C. To create a unique selling proposition
D. To improve customer satisfaction
Question 9
A firm's revenue function is given by R = 100x - 2x^2. If the firm's current output level is x = 10, calculate the firm's current revenue level.
A. 800
B. 900
C. 1000
D. 1100
Question 10
A sole trader's business is not a separate legal entity from the owner. What is the name of the legal entity that is responsible for the business's debts and liabilities?
A. Sole trader
B. Partnership
C. Company
D. Proprietor
Question 11
A firm's total revenue is given by the equation (TR = 20Q - 0.5Q^2). Find the marginal revenue function.
A. (MR = 20 - Q)
B. (MR = 20 + Q)
C. (MR = 20 - 0.5Q)
D. (MR = 20 + 0.5Q)
Question 12
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 50 units of wheat and 200 units of cloth.
Question 13
A company's profit function is given by the equation P = R - C, where P is the profit, R is the total revenue, and C is the total cost. If the company increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how much will the profit increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 14
A company's articles of association are a document that outlines the rules and regulations of the company. What is the purpose of the articles of association?
A. To outline the company's objectives
B. To outline the company's rules and regulations
C. To outline the company's financial structure
D. To outline the company's management structure
Question 15
A company uses a just-in-time (JIT) inventory system to manage its inventory. Which of the following is a benefit of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased production capacity
D. Enhanced customer satisfaction

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