POST UTME CHRISTOPHER UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering investing in a new business venture. The venture involves creating a new product line that requires significant upfront costs. However, the company believes that the potential returns on investment are substantial. What is the primary consideration for the company in terms of risk management?
A. The potential impact on the company's cash flow
B. The potential increase in competition
C. The potential decrease in employee morale
D. The potential increase in production costs
Question 2
A company's marketing strategy involves creating a new product line that targets a specific demographic. The product line is designed to appeal to a younger audience, and the company plans to promote it through social media and influencer marketing. However, the company is concerned about the potential risks associated with this strategy, including the possibility of backlash from older consumers who may feel left out. Which of the following is a key consideration for the company in terms of risk management?
A. The potential impact on the company's brand reputation
B. The potential loss of sales to competitors
C. The potential increase in production costs
D. The potential decrease in employee morale
Question 3
A company has a warehouse with a capacity to store 10,000 units of a product. The company receives an order for 8,000 units and wants to determine the optimal storage arrangement to minimize costs. If the company's storage costs are ₦5 per unit per month, calculate the total storage cost for the next 6 months.
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 4
A bank's reserve requirement is 20%. If the bank has ₦100,000 in deposits and is required to hold 20% of its deposits in reserve, how much can the bank lend?
A. ₦80000
B. ₦80000
C. ₦80000
D. ₦80000
Question 5
In a perfectly competitive market, the supply curve is perfectly elastic because the firm can easily increase its output to meet changes in demand. What is the implication of this on the firm's profit-maximizing output?
A. The firm will produce at the minimum point of the average total cost curve.
B. The firm will produce at the point where the marginal revenue equals the marginal cost.
C. The firm will produce at the point where the average revenue equals the average cost.
D. The firm will produce at the point where the marginal revenue equals the average cost.
Question 6
A sole trader's business is considered a separate legal entity from its owner. Discuss this statement with reference to the Companies and Allied Matters Act (CAMA) 2020.
A. True
B. False
C. Depends on the type of business
D. Not applicable in Nigeria
Question 7
A consumer purchases a product from a company and discovers that it is defective. The consumer contacts the company's customer service department, but the representative is unable to resolve the issue. What is the consumer's next course of action?
A. File a complaint with the Federal Trade Commission (FTC)
B. Seek a refund from the company
C. Contact the company's CEO directly
D. Post a negative review on social media
Question 8
A firm has a production function given by Q = 2L^0.5K^0.5. If the firm wants to produce 100 units of output, and the price of labor is 10 per unit, while the price of capital is 20 per unit, what is the minimum cost of production?
A. 1,000
B. 1,500
C. 2,000
D. 2,500
Question 9
A bank's cash reserve ratio is 10%. If the bank has a total deposit of ₦10,000,000, how much cash must it keep in reserve?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 10
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. shift to the left
Question 11
A firm's 'Return on Investment' (ROI) is a measure of its profitability. What is the formula for calculating the ROI?
A. \frac{Net\ Income}{Total\ Assets}
B. \frac{Total\ Assets}{Net\ Income}
C. \frac{Net\ Income - Total\ Assets}{Total\ Assets}
D. \frac{Total\ Assets - Net\ Income}{Total\ Assets}
Question 12
A sole trader has a business income of ₦200,000 and a business expense of ₦150,000. If the sole trader wants to determine the business profit, calculate the business profit.
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 13
A firm transports goods from Lagos to Abuja using a truck. If the distance is 500 km and the fuel consumption rate is 10 liters per 100 km, what is the total fuel consumption?
A. 50 liters
B. 60 liters
C. 70 liters
D. 80 liters
Question 14
A consumer purchases a product online and receives a defective item. The consumer contacts the company's customer service department, but the representative is unable to resolve the issue. What is the consumer's next course of action?
A. File a complaint with the Federal Trade Commission (FTC)
B. Seek a refund from the company
C. Contact the company's CEO directly
D. Post a negative review on social media
Question 15
A company has a portfolio of stocks with a beta of 1.2. If the market return is 10%, what is the expected return on the company's portfolio?
A. 12%
B. 15%
C. 18%
D. 20%

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