POST UTME CALEB UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has two production plants, one in Lagos and the other in Abuja. The cost of producing one unit of a product in Lagos is ₦100, while the cost of producing one unit in Abuja is ₦120. If the company produces 100 units of the product, what is the minimum cost of production?
A. ₦12000
B. ₦13000
C. ₦14000
D. ₦15000
Question 2
A company has a contract with a supplier to purchase a certain quantity of raw materials at a fixed price. However, the supplier has informed the company that there will be a shortage of raw materials and that the price will increase by 20%. What is the effect on the company's profit margin?
A. The profit margin will increase by 20%
B. The profit margin will decrease by 20%
C. The profit margin will remain unchanged.
D. The profit margin will increase by 10%
Question 3
A company is considering launching a new product in a foreign market. The company has conducted market research and determined that the demand for the product is elastic. However, the company is concerned about the potential risks associated with entering a new market. What is the most appropriate strategy for the company to minimize these risks?
A. Conduct further market research to gather more data.
B. Partner with a local company to share the risks.
C. Launch a pilot project to test the market.
D. Use a standardized marketing strategy that has been successful in other markets.
Question 4
A firm's revenue function is given by R = 2Q^2 - 10Q + 5. If the firm's cost function is C = 5Q^2 + 10Q + 5, what is the profit-maximizing level of output?
A. Q = 1
B. Q = 2
C. Q = 3
D. Q = 4
Question 5
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is a primary objective of public relations in this context?
A. To increase brand awareness
B. To persuade customers to buy the product
C. To improve the company's image
D. To reduce production costs
Question 6
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 operating in?
A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. Oligopoly
Question 7
A company's home and foreign trade policies are designed to maximize its global market share. Which of the following trade policies is most likely to be used?
A. Protectionism
B. Free Trade
C. Tariff
D. Quota
Question 8
A bank's financial statements show a significant increase in non-performing loans. Which of the following financial ratios is most likely to be affected?
A. Return on Assets (ROA)
B. Return on Equity (ROE)
C. Debt-to-Equity Ratio
D. Current Ratio
Question 9
A company is considering two different transportation modes to move its products from the factory to the warehouse. The cost of using a truck is ₦150,000, while the cost of using a train is ₦120,000. However, the train takes 2 days longer to deliver the products. If the company wants to minimize its transportation cost, which mode of transportation should it choose?
A. Truck
B. Train
C. Both options have the same cost
D. The cost depends on the number of products being transported
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 NOT a characteristic of a USP?
A. It is a statement that highlights the product's features and benefits
B. It is a statement that emphasizes the product's price advantage
C. It is a statement that focuses on the product's quality
D. It is a statement that is not relevant to the product's marketing strategy
Question 11
A consumer protection agency receives a complaint about a company's unfair contract terms. Which of the following laws is most likely to be relevant?
A. The Consumer Protection Act
B. The Unfair Contract Terms Act
C. The Trade Practices Act
D. The Competition and Consumer Protection Act
Question 12
A company 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 company operating in?
A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. Oligopoly
Question 13
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 100, y = 50
B. x = 80, y = 60
C. x = 70, y = 70
D. x = 60, y = 80
Question 14
A consumer has purchased a product with a warranty that covers defects in materials and workmanship for a period of one year. However, the consumer has used the product extensively and has not followed the recommended maintenance instructions. What is the likelihood that the warranty will cover any defects in the product?
A. High
B. Medium
C. Low
D. Very Low
Question 15
A firm's marketing strategy involves creating a brand identity that is consistent across all its marketing channels. Which of the following is a key element of a brand identity?
A. The firm's mission statement
B. The firm's logo
C. The firm's product features
D. The firm's target market

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: