Practice Post UTME CALEB UNIVERSITY commerce 2017 Past Questions

Question 1

In a perfectly competitive market, the supply curve is typically represented by the marginal cost curve. What is the relationship between the marginal revenue curve and the marginal cost curve in this market?

A. The marginal revenue curve is always above the marginal cost curve.

B. The marginal revenue curve is always below the marginal cost curve.

Correct C. The marginal revenue curve intersects the marginal cost curve at the equilibrium price.

D. The marginal revenue curve is horizontal and the marginal cost curve is vertical.

Correct Answer: C

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Question 2

A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units and has a safety stock of 2,000 units. What is the total stock level after receiving the order?

A. 10000

B. 8000

Correct C. 12000

D. 2000

Correct Answer: C

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Question 3

A firm is considering two marketing strategies: a high-low strategy and a penetration pricing strategy. Which strategy is more likely to increase market share in the short run?

A. High-low strategy

Correct B. Penetration pricing strategy

C. Both strategies are equally effective

D. Neither strategy is effective

Correct Answer: B

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Question 4

A company has a policy of paying its employees a salary of ₦50,000 per month. The company has 100 employees and wants to increase their salaries by 10%. What is the total increase in salaries?

A. ₦500000

Correct B. ₦1000000

C. ₦5000000

D. ₦10000000

Correct Answer: B

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Question 5

A firm is considering two types of insurance: a comprehensive insurance policy and a liability insurance policy. Which policy is more likely to cover losses due to natural disasters?

Correct A. Comprehensive insurance policy

B. Liability insurance policy

C. Both policies are equally effective

D. Neither policy is effective

Correct Answer: A

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Question 6

The Consumer Protection Act of 1999 provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?

A. The Act provides for the establishment of a Consumer Protection Council.

Correct B. The Act provides for the protection of consumers from unfair trade practices.

C. The Act provides for the establishment of a Consumer Protection Agency.

D. The Act provides for the protection of consumers from false advertising.

Correct Answer: B

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Question 7

A company is considering the introduction of a new product. The product is expected to generate significant revenue, but it also poses a risk to the environment. Which of the following is the most appropriate course of action?

A. The company should proceed with the introduction of the product.

Correct B. The company should conduct a thorough environmental impact assessment before introducing the product.

C. The company should abandon the product due to environmental concerns.

D. The company should seek the advice of a regulatory agency before introducing the product.

Correct Answer: B

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Question 8

A marketing manager is developing a campaign to promote a new product. The campaign is expected to reach a large audience, but it also has the potential to be misinterpreted. Which of the following is the most appropriate approach?

A. The marketing manager should focus on creating a catchy slogan to grab the audience's attention.

B. The marketing manager should conduct a thorough analysis of the target audience to ensure the campaign is effective.

Correct C. The marketing manager should avoid using any language that could be misinterpreted.

D. The marketing manager should seek the advice of a regulatory agency before launching the campaign.

Correct Answer: C

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Question 9

A company is considering the introduction of a new production process. The process is expected to increase efficiency, but it also poses a risk to employee safety. Which of the following is the most appropriate course of action?

A. The company should proceed with the introduction of the new process.

Correct B. The company should conduct a thorough risk assessment before introducing the new process.

C. The company should abandon the new process due to safety concerns.

D. The company should seek the advice of a regulatory agency before introducing the new process.

Correct Answer: B

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Question 10

A bank is considering the introduction of a new financial product. The product is expected to generate significant revenue, but it also poses a risk to customers. Which of the following is the most appropriate course of action?

A. The bank should proceed with the introduction of the new product.

Correct B. The bank should conduct a thorough risk assessment before introducing the new product.

C. The bank should abandon the new product due to customer concerns.

D. The bank should seek the advice of a regulatory agency before introducing the new product.

Correct Answer: B

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Question 11

A company's inventory management system uses a first-in-first-out (FIFO) method to track stock levels. If the system is not properly calibrated, what is the likely consequence on the company's financial statements?

A. The company's revenue will increase due to overstocking.

B. The company's cost of goods sold will be understated.

Correct C. The company's inventory levels will be misreported.

D. The company's cash flow will be negatively impacted.

Correct Answer: C

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Question 12

A consumer purchases a product with a 2-year warranty. If the product fails within the warranty period, the consumer is entitled to a replacement or refund. What type of risk is the consumer exposed to?

A. Market risk

B. Credit risk

C. Operational risk

Correct D. Product liability risk

Correct Answer: D

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Question 13

A company uses a just-in-time (JIT) inventory management system to minimize inventory costs. However, this system requires frequent deliveries from suppliers. What is the potential drawback of this system?

A. Increased inventory levels

B. Reduced inventory costs

Correct C. Increased transportation costs

D. Improved supply chain efficiency

Correct Answer: C

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Question 14

A company's insurance policy covers losses due to natural disasters. However, the policy has a 30-day waiting period before coverage begins. What type of risk is the company exposed to during this waiting period?

A. Market risk

B. Credit risk

C. Operational risk

Correct D. Contingent business interruption risk

Correct Answer: D

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Question 15

A company uses a transportation management system to optimize its logistics operations. However, this system requires significant investments in technology and infrastructure. What is the potential benefit of this system?

A. Reduced transportation costs

Correct B. Improved supply chain efficiency

C. Increased inventory levels

D. Enhanced customer satisfaction

Correct Answer: B

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Question 16

A company specializes in producing and selling a single product, which is a type of electronic device. The company's production process involves several stages, including design, prototyping, testing, and manufacturing. The company uses a just-in-time (JIT) inventory system to manage its inventory levels. What is the primary advantage of using a JIT inventory system in this context?

A. Reduced inventory costs

B. Improved product quality

Correct C. Increased production efficiency

D. Enhanced customer satisfaction

Correct Answer: C

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Question 17

A firm is considering two different marketing strategies for its new product: a high-low pricing strategy and a penetration pricing strategy. Which strategy is more likely to result in higher sales volume in the short run?

A. High-low pricing strategy

Correct B. Penetration pricing strategy

C. Price skimming strategy

D. Bundle pricing strategy

Correct Answer: B

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Question 18

A company is considering outsourcing its logistics and transportation operations to a third-party logistics (3PL) provider. What are the primary benefits of outsourcing logistics and transportation operations to a 3PL provider?

A. Reduced transportation costs

B. Improved delivery times

C. Increased flexibility

Correct D. All of the above

Correct Answer: D

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Question 19

A firm is considering two different production strategies for its new product: a make-to-stock (MTS) strategy and a make-to-order (MTO) strategy. Which strategy is more likely to result in higher production costs in the short run?

A. Make-to-stock (MTS) strategy

Correct B. Make-to-order (MTO) strategy

C. Just-in-time (JIT) strategy

D. Mass production strategy

Correct Answer: B

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Question 20

A company is considering two different marketing strategies for its new product: a product positioning strategy and a product differentiation strategy. Which strategy is more likely to result in higher sales volume in the long run?

A. Product positioning strategy

Correct B. Product differentiation strategy

C. Price skimming strategy

D. Bundle pricing strategy

Correct Answer: B

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Question 21

A firm specializing in the production of textiles has decided to expand its operations to include the production of clothing. What type of production specialization is this firm adopting?

A. Vertical Integration

B. Horizontal Integration

C. Conglomerate Integration

Correct D. Diversification

Correct Answer: D

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Question 22

A company is considering the use of a new marketing strategy that involves creating a viral video campaign. What type of marketing strategy is this company adopting?

Correct A. Social Media Marketing

B. Content Marketing

C. Influencer Marketing

D. Experiential Marketing

Correct Answer: A

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Question 23

A firm has decided to purchase an insurance policy to protect itself against losses due to natural disasters. What type of risk is this firm trying to mitigate?

A. Operational Risk

B. Strategic Risk

Correct C. Financial Risk

D. Compliance Risk

Correct Answer: C

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Question 24

A company is considering the use of a new transportation mode to reduce its logistics costs. What type of transportation mode is this company considering?

A. Air Transport

Correct B. Rail Transport

C. Road Transport

D. Water Transport

Correct Answer: B

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Question 25

A sole trader has decided to expand its operations to include the production of new products. What type of business unit is this sole trader adopting?

Correct A. Sole Trade

B. Partnership

C. Limited Liability Company

D. Cooperative Society

Correct Answer: A

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