POST UTME COAL CITY UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering implementing a new production process that uses a different type of raw material. The firm has conducted a cost-benefit analysis and found that the new process will reduce costs but may also increase the risk of product defects. What is the primary consideration that the firm should take into account?
A. The potential increase in product defects
B. The reduction in costs
C. The impact on the environment
D. The impact on the firm's reputation
Question 2
A firm is considering two export strategies for its product: Strategy A involves exporting to a country with a high demand for the product but a high tariff of 20%, while Strategy B involves exporting to a country with a low demand for the product but a low tariff of 5%. If the firm expects to sell 10,000 units of the product, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally viable
D. Neither strategy is viable
Question 3
A firm specializes in the production of a single good, which is sold in a competitive market. The firm's production function is given by Q = 100L^0.5, where Q is the quantity produced and L is the labor input. If the wage rate is ₦100 per hour, what is the firm's optimal labor input?
A. 10 hours
B. 20 hours
C. 30 hours
D. 40 hours
Question 4
A firm is considering outsourcing some of its production processes to a third-party supplier. The firm has conducted a risk assessment and found that the outsourcing arrangement may increase the risk of product defects. What is the primary consideration that the firm should take into account?
A. The potential increase in product defects
B. The reduction in costs
C. The impact on the environment
D. The impact on the firm's reputation
Question 5
A firm is considering outsourcing some of its production processes to a third-party supplier. The firm has conducted a risk assessment and found that the outsourcing arrangement may increase the risk of product defects. What is the primary consideration that the firm should take into account?
A. The potential increase in product defects
B. The reduction in costs
C. The impact on the environment
D. The impact on the firm's reputation
Question 6
A company is considering the use of a new transportation mode. The new mode will be more expensive than the current mode, but it will also be faster and more reliable. Which of the following transportation theories would best explain the company's decision to adopt the new mode?
A. The theory of modal split
B. The theory of transportation demand
C. The theory of transportation supply
D. The theory of transportation cost
Question 7
A firm is considering implementing a new quality control process that uses a statistical approach. The firm has conducted a cost-benefit analysis and found that the new process will reduce product defects but may also increase the cost of quality control. What is the primary consideration that the firm should take into account?
A. The potential increase in cost of quality control
B. The reduction in product defects
C. The impact on the environment
D. The impact on the firm's reputation
Question 8
A firm's debt-to-equity ratio is 2:1. If its total debt is ₦4,000,000 and its equity is ₦2,000,000, what is its interest coverage ratio?
A. 1:1
B. 1.5:1
C. 2:1
D. 3:1
Question 9
In a perfectly competitive market, the law of diminishing marginal utility implies that the marginal utility of the last unit of a good consumed is equal to the price of the good. What is the implication of this for the consumer's optimal consumption?
A. The consumer will consume the entire quantity of the good available.
B. The consumer will consume a quantity of the good that maximizes their satisfaction.
C. The consumer will not consume the good at all.
D. The consumer will consume a quantity of the good that is less than the optimal quantity.
Question 10
A company has the following production function: Q = 2L^0.5 * K^0.5. If the price of labor is 10 per unit and the price of capital is 20 per unit, and the company wants to maximize its profit, what is the optimal level of labor and capital?
A. L = 100, K = 100
B. L = 50, K = 50
C. L = 200, K = 200
D. L = 150, K = 150
Question 11
A company's dividend payout ratio is 50%. If its net income is ₦1,500,000 and its dividend payment is ₦750,000, what is its earnings per share (EPS)?
A. ₦1.50
B. ₦1.75
C. ₦2.00
D. ₦2.50
Question 12
A consumer protection agency receives a complaint from a customer who claims that a product is defective. The agency investigates the complaint and finds that the product does not meet the required safety standards. What action should the agency take?
A. Issue a warning to the manufacturer
B. Order the manufacturer to recall the product
C. Fine the manufacturer for non-compliance
D. Close the case due to lack of evidence
Question 13
A company's Articles of Association is a document that outlines its
A. Share Capital Structure
B. Directors' Remuneration
C. Business Objectives
D. Management Structure
Question 14
A company is considering two different transportation modes to move goods from a factory to a warehouse. Mode A costs ₦500 per unit and has a fixed cost of ₦10,000. Mode B costs ₦300 per unit and has a fixed cost of ₦20,000. If the company needs to transport 100 units, which mode should it choose?
A. Mode A
B. Mode B
C. Both modes are equally optimal
D. Neither mode is optimal
Question 15
A company's Memorandum of Association is a document that outlines its
A. Business Objectives
B. Share Capital Structure
C. Directors' Remuneration
D. Articles of Association

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