POST UTME BSU 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader is considering a new business venture that involves selling products online. The sole trader has a small initial investment and is unsure if the business will generate sufficient returns on investment. What type of business structure is the sole trader using?
A. Sole trader
B. Partnership
C. Limited company
D. Cooperative
Question 2
A sole trader has a business income of ₦1,500,000 and business expenses of ₦800,000. What is the sole trader's business profit?
A. ₦700,000
B. ₦1,000,000
C. ₦1,300,000
D. ₦1,500,000
Question 3
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A company wants to advertise its product on television. The company has a budget of ₦1,000,000 for the advertisement. The cost of producing the advertisement is ₦500,000, and the cost of airing the advertisement on television is ₦300,000. What is the maximum number of times the advertisement can be aired on television?
A. 3 times
B. 4 times
C. 5 times
D. 6 times
Question 5
A marketing strategy that involves creating a sense of urgency to encourage customers to make a purchase is known as _______.
A. Scarcity
B. Exclusivity
C. Limited Time Offer
D. Free Trial
Question 6
A foreign trade agreement between two countries is governed by the _______ Convention.
A. General Agreement on Tariffs and Trade (GATT)
B. World Trade Organization (WTO)
C. International Trade Organization (ITO)
D. United Nations Conference on Trade and Development (UNCTAD)
Question 7
A company is considering launching a new product in the Nigerian market. The company has conducted market research and found that the product is likely to be successful, but the company is concerned about the high cost of production. Which of the following marketing strategies would be most appropriate for the company?
A. Product differentiation
B. Market segmentation
C. Target marketing
D. Positioning
Question 8
A company is considering two different production processes for a new product. Process A has a fixed cost of ₦50,000 and a variable cost of ₦20 per unit. Process B has a fixed cost of ₦30,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦60 per unit, which process should the company use?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 9
A warehouse is storing a large quantity of perishable goods. The warehouse has a temperature control system that maintains a consistent temperature of 20°C. However, the system is not designed to handle extreme temperature fluctuations. What type of inventory management strategy should the warehouse use to minimize stock loss?
A. First-in, first-out (FIFO)
B. Last-in, first-out (LIFO)
C. First-expired, first-out (FEFO)
D. Just-in-time (JIT)
Question 10
A firm's cost function is given by C = 2L + 3H, where C is cost, L is labor and H is capital. If the firm wants to minimize cost while producing 100 units of output, what is the optimal combination of labor and capital?
A. L = 20, H = 30
B. L = 30, H = 20
C. L = 40, H = 10
D. L = 10, H = 40
Question 11
A company is considering the introduction of a new product line. The product has a high initial investment cost but low ongoing costs. Using the concept of break-even analysis, determine the minimum number of units that must be sold to break even.
A. 100 units
B. 500 units
C. 1000 units
D. 2000 units
Question 12
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are still at risk in case the business incurs debts. What is the name of this type of risk?
A. Unlimited liability
B. Limited liability
C. Personal liability
D. Business liability
Question 13
A shipowner's liability for cargo damage is governed by the _______ Convention.
A. Hague-Visby Rules
B. Berne Convention
C. Paris Convention
D. Rotterdam Rules
Question 14
A consumer has a budget constraint of ₦1,000 and a preference for two goods, A and B. The prices of goods A and B are ₦200 and ₦300 respectively. What is the consumer's optimal consumption bundle?
A. (4, 2)
B. (2, 3)
C. (3, 2)
D. (2, 4)
Question 15
The Central Bank of Nigeria (CBN) uses monetary policy to control inflation by increasing the reserve requirement for commercial banks. This action will likely lead to a decrease in the money supply, causing a decrease in the price level. However, if the CBN also increases the discount rate, it will increase the cost of borrowing for commercial banks, which may lead to a decrease in the money supply. Which of the following is a correct statement about the effect of the CBN's actions on the money supply?
A. The money supply will decrease due to the increase in the reserve requirement.
B. The money supply will increase due to the decrease in the discount rate.
C. The money supply will remain unchanged due to the offsetting effects of the two policies.
D. The money supply will increase due to the increase in the discount rate.

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