POST UTME CRAWFORD UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The diagram below shows a simple graph of supply and demand. If the price of the good increases, what will be the effect on the quantity supplied?
A. The quantity supplied will increase
B. The quantity supplied will decrease
C. The quantity supplied will remain the same
D. The quantity supplied will be reversed
Question 2
A firm's marketing strategy is most likely to be influenced by which of the following factors?
A. The firm's production costs
B. The firm's market share
C. The firm's target audience
D. The firm's profit margins
Question 3
A company's articles of association may provide for the appointment of a managing director. This is an example of which of the following?
A. Appointment of a director
B. Appointment of a secretary
C. Appointment of a managing director
D. Appointment of a chairman
Question 4
A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation for the owner's personal liability.
A. The owner's personal assets are protected from business debts.
B. The owner's personal assets are at risk of being seized to pay business debts.
C. The business is not required to pay taxes on its profits.
D. The business is not required to file annual returns with the relevant authorities.
Question 5
A firm's marketing strategy involves creating a brand identity to differentiate its product from competitors. Which of the following is an example of a brand identity?
A. Unique packaging
B. Distinctive logo
C. Consistent advertising
D. All of the above
Question 6
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units
Question 7
A company's warehousing and stock control system involves a first-in, first-out (FIFO) inventory management policy. What is the primary advantage of this policy?
A. Reduced inventory costs
B. Improved inventory turnover
C. Increased storage capacity
D. Enhanced customer satisfaction
Question 8
A firm's production function is given by the equation Q = 2L^0.5K^0.5. If the firm's output is 100 units and the number of workers (L) is 25, what is the value of the capital stock (K)?
A. 25
B. 50
C. 100
D. 200
Question 9
A company's marketing strategy involves creating a brand identity. Which of the following is a key element of a brand identity?
A. Product features
B. Price
C. Packaging
D. Logo
Question 10
A firm's financial statements show a net income of ₦1.2 million, but the cash flow statement shows a net decrease of ₦500,000. What is the most likely explanation for this discrepancy?
A. Depreciation of assets
B. Increase in accounts receivable
C. Increase in accounts payable
D. Decrease in inventory
Question 11
A consumer protection agency is most likely to investigate a complaint about a product that has been recalled due to which of the following reasons?
A. The product has been found to be defective
B. The product has been found to be hazardous
C. The product has been found to be misleading
D. The product has been found to be counterfeit
Question 12
A company's financial statements show that its current ratio is 2:1. If the company's current assets are ₦500,000 and its current liabilities are ₦250,000, what is the company's quick ratio?
A. 1.5
B. 2
C. 2.5
D. 3
Question 13
A company is involved in the importation of goods into Nigeria. The company is considering the use of a new shipping route that is cheaper than the current route but has a higher risk of delays. Which of the following would be the most appropriate decision for the company?
A. To adopt the new shipping route to reduce costs.
B. To continue using the current shipping route to maintain reliability.
C. To conduct further research on the risks associated with the new shipping route.
D. To consult with stakeholders on the decision to adopt the new shipping route.
Question 14
A company's Memorandum and Articles of Association are its constitutional documents. What are the main differences between these two documents?
A. The Memorandum outlines the company's objectives, while the Articles detail its internal management.
B. The Memorandum outlines the company's internal management, while the Articles detail its objectives.
C. The Memorandum and Articles are interchangeable terms.
D. The Memorandum is a document that is filed with the relevant authorities, while the Articles are a private document.
Question 15
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. Which of the following is an example of a USP?
A. Lower price
B. Higher quality
C. Unique design
D. Better customer service

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