Practice Post UTME CRAWFORD UNIVERSITY commerce 2017 Past Questions

Question 1

A company's marketing strategy involves creating a brand image that appeals to a specific demographic. This approach is an example of which of the following?

A. Segmentation

B. Target Marketing

Correct C. Positioning

D. Product Differentiation

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A firm's production process involves the transformation of raw materials into finished goods. This process is an example of which of the following?

A. Marketing

Correct B. Production

C. Inventory Control

D. Logistics

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A company's warehouse is used to store finished goods before they are shipped to customers. This is an example of which of the following?

A. Raw Materials Storage

Correct B. Finished Goods Storage

C. Work-in-Progress Storage

D. Inventory Control

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A firm's specialization in a particular product or service is an example of which of the following?

A. Diversification

Correct B. Concentration

C. Horizontal Integration

D. Vertical Integration

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A company's home market is the domestic market where it operates. This is an example of which of the following?

A. Export Market

B. Import Market

Correct C. Home Market

D. Foreign Market

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

In a sole trader business, what is the primary advantage of using a sole proprietorship structure?

A. Limited liability

B. Easy to set up

Correct C. Flexibility in decision-making

D. No tax benefits

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A company has a capital structure consisting of 60% debt and 40% equity. If the company's cost of debt is 8% and its cost of equity is 12%, what is the company's weighted average cost of capital (WACC)?

A. 6%

Correct B. 7%

C. 8%

D. 9%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A bank has a reserve requirement of 10% and a cash reserve of ₦1,000,000. If the bank's total deposits are ₦10,000,000, what is the bank's excess reserves?

Correct A. ₦900,000

B. ₦1,000,000

C. ₦1,100,000

D. ₦1,200,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A company uses the just-in-time (JIT) inventory system. What is the primary benefit of this system?

Correct A. Reduced inventory costs

B. Improved quality control

C. Increased flexibility in production

D. Better forecasting

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A firm is considering two different transportation modes: trucking and rail. If the cost of trucking is ₦1,000 per ton and the cost of rail is ₦800 per ton, and the firm needs to transport 10,000 tons, what is the total transportation cost?

A. ₦8,000,000

Correct B. ₦9,000,000

C. ₦10,000,000

D. ₦11,000,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A company has two factories, A and B, producing the same product. Factory A has a production function Q_A = 2L_A^(1/2)K_A^(1/2), while factory B has a production function Q_B = 2L_B^(1/2)K_B^(1/2). If factory A produces 100 units of output with 10 units of labor and 10 units of capital, and factory B produces 100 units of output with 5 units of labor and 20 units of capital, which factory has a higher marginal product of labor?

Correct A. Factory A

B. Factory B

C. Both factories have the same marginal product of labor

D. Neither factory has a higher marginal product of labor

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

A firm has a production function Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A company has two factories, A and B, producing the same product. Factory A has a production function Q_A = 2L_A^(1/2)K_A^(1/2), while factory B has a production function Q_B = 2L_B^(1/2)K_B^(1/2). If factory A produces 100 units of output with 10 units of labor and 10 units of capital, and factory B produces 100 units of output with 5 units of labor and 20 units of capital, which factory has a higher marginal product of labor?

Correct A. Factory A

B. Factory B

C. Both factories have the same marginal product of labor

D. Neither factory has a higher marginal product of labor

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

A firm has a production function Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

A company's warehouse is storing goods worth ₦5,000,000. The goods are insured against theft and damage. If the insurance premium is 2% of the total value of the goods, and the company pays an additional ₦50,000 as a deductible, what is the total cost of insurance for the goods?

A. ₦100,000

Correct B. ₦120,000

C. ₦150,000

D. ₦180,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A foreign trade agreement between Nigeria and a foreign country involves the exchange of goods worth ₦1,000,000. If the exchange rate is 1 USD = ₦500, and the foreign country pays a 5% commission on the total value of the goods, what is the total amount received by Nigeria in USD?

A. 2,000

Correct B. 2,500

C. 3,000

D. 3,500

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A company's financial statements show a net income of ₦1,500,000. If the company pays a 25% tax on its net income, and the tax is deducted from the net income, what is the company's taxable income?

Correct A. ₦1,125,000

B. ₦1,250,000

C. ₦1,375,000

D. ₦1,500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

A bank's reserve requirement is 10% of its total deposits. If the bank has a total deposit of ₦10,000,000, what is the minimum amount of cash the bank must hold in reserve?

Correct A. ₦1,000,000

B. ₦1,500,000

C. ₦2,000,000

D. ₦2,500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A company's stock is listed on the Nigerian Stock Exchange (NSE) at a price of ₦50 per share. If the company issues 10,000 shares, what is the total amount received by the company?

A. ₦500,000

B. ₦750,000

Correct C. ₦1,000,000

D. ₦1,250,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specializing in the production of a particular good, even if it is not the most efficient producer of that good.

A. By reducing production costs and increasing efficiency

B. By increasing the demand for the good and reducing supply

Correct C. By exploiting its comparative advantage and trading with other countries

D. By imposing tariffs and quotas on imports

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

A firm is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦100 per kilometer, while the cost of transporting goods by rail is ₦80 per kilometer. If the firm needs to transport 500 kilometers of goods, what is the total cost of transportation by road and rail?

A. ₦50,000

B. ₦60,000

Correct C. ₦80,000

D. ₦100,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A company is considering investing in a new warehouse to store its goods. The cost of building the warehouse is ₦5 million, and the company expects to save ₦1 million per year in transportation costs by using the warehouse. If the company expects to use the warehouse for 5 years, what is the net present value (NPV) of the investment?

Correct A. ₦2 million

B. ₦3 million

C. ₦4 million

D. ₦5 million

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

A country is considering imposing a tariff on imports of a particular good. The tariff is set at 20% of the value of the good. If the country imports 100 units of the good worth ₦10,000 each, what is the total revenue generated by the tariff?

A. ₦2 million

Correct B. ₦4 million

C. ₦6 million

D. ₦8 million

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A firm is considering exporting its goods to a foreign country. The firm expects to earn a profit of ₦1 million per year from the export, but it also expects to incur a cost of ₦500,000 per year in transportation and marketing. What is the net profit earned by the firm from the export?

A. ₦500,000

Correct B. ₦750,000

C. ₦1 million

D. ₦1.5 million

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME CRAWFORD UNIVERSITY 2017 Commerce | Objective

Master the Exam!

Help others prepare! Share this practice hub: