POST UTME COVENANT UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering implementing a total quality management (TQM) system to improve its product quality. The company has identified several potential benefits of TQM, including improved product quality, increased customer satisfaction, and reduced costs. However, the company is also aware of several potential drawbacks, including increased training costs, higher quality control costs, and reduced product availability. Which of the following is a key consideration for the company when deciding whether to implement TQM?
A. The company's ability to reduce its training costs
B. The company's ability to improve product quality
C. The company's ability to increase customer satisfaction
D. The company's ability to reduce its quality control costs
Question 2
A foreign trade agreement between two countries involves the exchange of
A. Goods and services
B. Currency and commodities
C. Intellectual property and technology
D. All of the above
Question 3
A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following is a type of financial intermediary?
A. Commercial bank
B. Investment bank
C. Central bank
D. Insurance company
Question 4
A company is exporting goods to a foreign country. The company has a 10% chance of losing the shipment due to customs delays. If the company has a 100,000 insurance policy, what is the expected value of the loss?
A. 10,000
B. 20,000
C. 30,000
D. 40,000
Question 5
A company's financial statements include the
A. Balance sheet and income statement
B. Cash flow statement and statement of changes in equity
C. Statement of financial position and statement of cash flows
D. All of the above
Question 6
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a primary goal of advertising in this strategy?
A. To create awareness about the company's products
B. To build brand loyalty
C. To increase sales revenue
D. To reduce production costs
Question 7
Determine the optimal storage capacity for a warehouse with a maximum floor area of 5000 square meters, given that the storage density is 2.5 pallets per square meter, and the average pallet weight is 500 kilograms.
A. 1000 pallets
B. 2000 pallets
C. 2500 pallets
D. 3000 pallets
Question 8
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is given by MR = 200 - 4P, find the price at which the firm's marginal revenue equals its marginal cost.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 9
A company is considering implementing a just-in-time (JIT) inventory system to reduce its inventory costs. The company has identified several potential benefits of JIT, including reduced inventory costs, improved product quality, and increased flexibility. However, the company is also aware of several potential drawbacks, including increased lead times, higher transportation costs, and reduced product availability. Which of the following is a key consideration for the company when deciding whether to implement JIT?
A. The company's ability to negotiate lower transportation costs with its suppliers
B. The company's ability to reduce its inventory costs
C. The company's ability to improve product quality
D. The company's ability to reduce its lead times
Question 10
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how many percentage points will the quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A sole trader's business is considered a separate legal entity from its owner. Which of the following best describes the legal status of a sole trader?
A. Unincorporated business
B. Incorporated business
C. Partnership
D. Limited liability company
Question 12
A firm is considering exporting its products to a foreign market. Which of the following is a major advantage of exporting?
A. Increased competition
B. Reduced production costs
C. Access to new markets and customers
D. Lower marketing expenses
Question 13
A company is considering the establishment of a new branch in a foreign country. Which of the following is a key factor to consider in the decision-making process?
A. Market size and growth potential
B. Availability of raw materials
C. Labor costs and availability
D. Government regulations and policies
Question 14
A sole trader is considering the purchase of a new piece of equipment for their business. Which of the following is a key consideration?
A. The cost of the equipment
B. The potential return on investment
C. The impact on cash flow
D. The effect on tax liability
Question 15
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is given by MR = 200 - 4P, find the price at which the firm's marginal revenue equals its marginal cost.
A. ₦50
B. ₦75
C. ₦100
D. ₦125

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