POST UTME CALEB UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's marketing strategy involves a mix of advertising and sales promotions. If the company allocates 30% of its budget to advertising and the remaining 70% to sales promotions, and it spends ₦1,500,000 on advertising, how much does it spend on sales promotions?
A. ₦1,050,000
B. ₦1,050,000
C. ₦1,050,000
D. ₦1,050,000
Question 2
A firm specializes in producing a single product, which is sold in a competitive market. If the firm's production function is given by Q = 100L^0.5, where Q is the quantity produced and L is the labor input, and the market price of the product is P = 10Q^(-0.5), what is the firm's profit-maximizing level of labor input?
A. 20
B. 30
C. 40
D. 50
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm increases labor from 4 to 9 units, and capital from 9 to 16 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A firm's financial statements show that its total assets are ₦500,000 and its total liabilities are ₦300,000. What is the firm's equity?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 5
A company is considering the adoption of a new production technology. Which of the following is a key factor to consider in the decision-making process?
A. Cost savings
B. Increased market share
C. Environmental impact
D. Employee morale
Question 6
A company has a product liability insurance policy that covers them against losses due to product defects.
A. The company should not worry about product defects because the insurance policy will cover them.
B. The company should take steps to prevent product defects because it will reduce the risk of losses.
C. The company should increase the premium on the insurance policy because it will reduce the risk of losses.
D. The company should not purchase the insurance policy because it is too expensive.
Question 7
A warehouse's inventory turnover ratio is calculated as the cost of goods sold divided by the
A. Average inventory
B. Total inventory
C. Inventory turnover period
D. Inventory holding cost
Question 8
A firm's production process involves the use of a machine that requires a ₦5,000 maintenance cost every month. If the firm produces 1,000 units of a product per month, and each unit sells for ₦100, what is the firm's contribution margin per unit?
A. ₦95
B. ₦90
C. ₦85
D. ₦80
Question 9
A firm's financial statements show that its current assets are ₦150,000 and its current liabilities are ₦120,000. What is the firm's working capital?
A. ₦30,000
B. ₦60,000
C. ₦90,000
D. ₦120,000
Question 10
A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?
A. Limited liability
B. Separate taxation
C. Separate bank account
D. Separate business registration
Question 11
A firm purchases a liability insurance policy with a premium of 500 per year. If the firm's expected loss is 1000 per year, what is the firm's expected profit?
A. 500
B. 1000
C. 1500
D. 2000
Question 12
A company uses the following marketing mix: Product = high-quality goods, Price = 20 per unit, Place = online sales, Promotion = social media advertising. If the company's target market is young adults, what is the company's marketing strategy?
A. Target young adults with high-quality goods
B. Target young adults with low prices
C. Target young adults with online sales
D. Target young adults with social media advertising
Question 13
A company's articles of association can be amended to change its
A. Objectives
B. Share capital
C. Directors' remuneration
D. Shareholders' rights
Question 14
A company's marketing strategy involves a mix of advertising and sales promotions. If the company allocates 30% of its budget to advertising and the remaining 70% to sales promotions, and it spends ₦1,500,000 on advertising, how much does it spend on sales promotions?
A. ₦1,050,000
B. ₦1,050,000
C. ₦1,050,000
D. ₦1,050,000
Question 15
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. move in the opposite direction

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