POST UTME CRAWFORD UNIVERSITY 2019 Commerce | Objective

Are you preparing for POST UTME CRAWFORD UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve

Correct Answer: A

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Question 2
A firm's revenue is given by the equation R = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, its revenue will be
A. ₦1,800
Correct B. ₦2,000
C. ₦2,200
D. ₦2,400

Correct Answer: B

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Question 3
A company has a warehouse with a capacity of 10,000 units. The company's inventory level is currently at 8,000 units. If the company receives a shipment of 3,000 units, its new inventory level will be
A. 5,000 units
Correct B. 6,000 units
C. 8,000 units
D. 10,000 units

Correct Answer: B

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Question 4
A firm's cost function is given by the equation C(x) = 100 + 2x^2, where x is the number of units produced. If the firm produces 10 units, its total cost will be
A. ₦1,200
B. ₦1,400
Correct C. ₦1,600
D. ₦1,800

Correct Answer: C

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Question 5
A company has a marketing budget of ₦1,000,000. If it allocates 30% of the budget to advertising, how much will it spend on advertising?
A. ₦300,000
Correct B. ₦350,000
C. ₦400,000
D. ₦450,000

Correct Answer: B

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Question 6
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
Correct B. Flexibility in decision-making
C. Easy to set up
D. No tax benefits

Correct Answer: B

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Question 7
A company has a turnover of ₦1,000,000 and a profit of ₦200,000. What is the profit margin?
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 8
A firm imports goods worth ₦500,000 and exports goods worth ₦300,000. What is the trade balance?
A. ₦100,000 surplus
Correct B. ₦100,000 deficit
C. ₦200,000 surplus
D. ₦200,000 deficit

Correct Answer: B

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Question 9
A company uses the following data to calculate its marketing mix: product price = ₦100, product quality = 8/10, distribution channels = 6/10, advertising = 9/10. What is the overall marketing mix score?
A. 6.2/10
B. 6.5/10
Correct C. 6.8/10
D. 7.1/10

Correct Answer: C

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Question 10
A firm has a market share of 30% and a competitor has a market share of 20%. What is the competitive ratio?
A. 1.5
Correct B. 1.6
C. 1.7
D. 1.8

Correct Answer: B

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Question 11
A company's sole trader is considering expanding its operations to a foreign market. Which of the following is a key consideration for the sole trader when deciding whether to expand?
A. The cost of setting up a new business in the foreign market
B. The potential for increased competition in the foreign market
Correct C. The need to adapt the company's products or services to meet local market demands
D. The impact of exchange rates on the company's profits

Correct Answer: C

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Question 12
A consumer has purchased a product from a company that has a 30-day money-back guarantee. If the consumer returns the product after 31 days, what is the likely outcome?
A. The company will refund the consumer's money
B. The company will replace the product with a new one
C. The consumer will be charged a restocking fee
Correct D. The consumer will not be entitled to a refund

Correct Answer: D

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Question 13
A company has a credit facility with a bank that allows it to borrow up to ₦10 million. If the company borrows ₦8 million and repays ₦2 million, what is the outstanding balance?
Correct A. ₦6 million
B. ₦8 million
C. ₦10 million
D. ₦12 million

Correct Answer: A

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Question 14
A sole trader has a business that generates an average monthly profit of ₦50,000. If the sole trader wants to expand the business and increase the average monthly profit to ₦100,000, what is the minimum amount of additional capital required?
A. ₦25,000
Correct B. ₦50,000
C. ₦75,000
D. ₦100,000

Correct Answer: B

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Question 15
A company has a business interruption insurance policy that covers losses due to fire. If the company's premises are damaged by fire and the policy pays out ₦1 million, what is the company's deductible?
A. ₦100,000
B. ₦200,000
Correct C. ₦500,000
D. ₦1 million

Correct Answer: C

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Question 16
In a production process, specialization occurs when a firm focuses on producing a specific product or service, leading to increased efficiency and productivity. What is the primary benefit of specialization in production?
A. Increased labor costs
B. Improved product quality
Correct C. Reduced production time
D. Increased market share

Correct Answer: C

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Question 17
A company is considering launching a new product line. The product has a high demand in the market, but the production costs are also high. What is the primary factor that the company should consider before making a decision?
A. Market demand
Correct B. Production costs
C. Competitor analysis
D. Marketing strategy

Correct Answer: B

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Question 18
A consumer protection law requires that all products sold in the market must have a clear label indicating the ingredients used in the product. What is the primary purpose of this labeling requirement?
A. To increase sales
B. To reduce production costs
Correct C. To inform consumers about product ingredients
D. To reduce market competition

Correct Answer: C

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Question 19
A company is considering using a new marketing strategy to promote its product. The strategy involves creating a social media campaign to reach a wider audience. What is the primary benefit of this marketing strategy?
A. Increased market share
B. Improved product quality
C. Reduced production costs
Correct D. Increased brand awareness

Correct Answer: D

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Question 20
A warehouse is storing a large quantity of goods. The warehouse has a limited capacity, and the goods are being received at a faster rate than they are being shipped out. What is the primary concern of the warehouse manager?
Correct A. Overstocking
B. Understocking
C. Damaged goods
D. Theft

Correct Answer: A

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Question 21
A company has two production lines, A and B. Line A produces 100 units of a product per hour, while line B produces 80 units per hour. If the company operates for 8 hours a day, what is the total number of units produced by both lines in a day?
A. 960
B. 800
Correct C. 1120
D. 1280

Correct Answer: C

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Question 22
A consumer protection agency has the following data on complaints received in a year:
Correct A. The agency should increase funding for consumer education
B. The agency should hire more staff to handle complaints
C. The agency should focus on resolving complaints quickly
D. The agency should reduce the number of complaints by improving product quality

Correct Answer: A

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Question 23
A company has the following balance sheet:
A. The company is profitable
B. The company has a high debt-to-equity ratio
C. The company has a low current ratio
Correct D. The company has a high return on equity

Correct Answer: D

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Question 24
A foreign trade agreement between two countries has the following terms:
Correct A. The agreement will increase trade between the two countries
B. The agreement will decrease trade between the two countries
C. The agreement will have no effect on trade between the two countries
D. The agreement will increase trade between the two countries, but at a cost to the environment

Correct Answer: A

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Question 25
A company has the following production costs:
Correct A. The company should increase production to maximize profits
B. The company should decrease production to minimize costs
C. The company should maintain current production levels
D. The company should invest in new technology to reduce costs

Correct Answer: A

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