POST UTME CRAWFORD UNIVERSITY 2023 Commerce | Objective

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Question 1 View Details
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 View Details
A company's break-even point is the point at which its total revenue equals its
A. total fixed costs
B. total variable costs
Correct C. total costs
D. net income

Correct Answer: C

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Question 3 View Details
A firm's supply curve is upward-sloping because as the price of its product increases, it
A. increases its production
Correct B. decreases its production
C. increases its demand
D. decreases its demand

Correct Answer: B

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Question 4 View Details
A company's cash flow statement shows the inflows and outflows of its
A. operating activities
B. investing activities
C. financing activities
Correct D. all of the above

Correct Answer: D

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Question 5 View Details
A firm's cost of capital is the rate of return that investors expect to earn on their investment in the firm
Correct A. true
B. false
C. it depends on the type of investment
D. it depends on the industry

Correct Answer: A

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Question 6 View Details
A company's marketing strategy involves a combination of advertising, sales promotions, and public relations. Which of the following is a key benefit of using a combination of these tactics?
Correct A. Increased brand awareness
B. Improved customer engagement
C. Enhanced product differentiation
D. Better return on investment

Correct Answer: A

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Question 7 View Details
A sole trader's business is affected by the following factors: market demand, competition, and government regulations. Which of the following is a key characteristic of a sole trader's business?
A. Limited liability
Correct B. Unlimited liability
C. Separate business entity
D. No business continuity

Correct Answer: B

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Question 8 View Details
A bank's investment portfolio includes stocks, bonds, and real estate. Which of the following is a key risk associated with investing in stocks?
A. Inflation risk
B. Credit risk
Correct C. Market risk
D. Liquidity risk

Correct Answer: C

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Question 9 View Details
A consumer protection law requires businesses to provide clear and accurate information about their products. Which of the following is a key benefit of this law?
Correct A. Increased consumer trust
B. Improved product quality
C. Enhanced business reputation
D. Better regulatory compliance

Correct Answer: A

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Question 10 View Details
A company's financial statements include a balance sheet, income statement, and cash flow statement. Which of the following is a key purpose of the balance sheet?
A. To show the company's profitability
B. To show the company's liquidity
Correct C. To show the company's solvency
D. To show the company's ownership structure

Correct Answer: C

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Question 11 View Details
In a warehouse with a storage capacity of 10,000 units, the inventory level is currently at 8,000 units. If the warehouse receives a shipment of 2,000 units and 500 units are sold, what is the new inventory level?
A. 6,000
Correct B. 7,500
C. 8,500
D. 9,000

Correct Answer: B

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Question 12 View Details
A company's marketing strategy involves a 20% discount on all products for the first week of a new product launch. If the original price of the product is ₦5,000, what is the discounted price?
Correct A. ₦4,000
B. ₦4,500
C. ₦5,000
D. ₦5,500

Correct Answer: A

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Question 13 View Details
A sole trader has a business income of ₦200,000 and expenses of ₦150,000. What is the profit before tax?
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 14 View Details
A company's production process involves a series of operations: cutting, drilling, and assembly. If the cutting operation takes 2 hours, the drilling operation takes 3 hours, and the assembly operation takes 4 hours, what is the total production time?
A. 9 hours
B. 10 hours
Correct C. 11 hours
D. 12 hours

Correct Answer: C

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Question 15 View Details
A company's marketing strategy involves a 15% increase in sales for the first quarter of the year. If the original sales figure is ₦1,500,000, what is the new sales figure?
A. ₦1,725,000
B. ₦1,800,000
Correct C. ₦1,875,000
D. ₦2,000,000

Correct Answer: C

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Question 16 View Details
The concept of 'Giffen Goods' in microeconomics refers to a situation where an increase in the price of a good leads to an increase in its demand. Which of the following is a characteristic of Giffen Goods?
Correct A. They are inferior goods
B. They are normal goods
C. They are luxury goods
D. They are complementary goods

Correct Answer: A

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Question 17 View Details
A company is considering two investment options: Option A, which has a 10% annual return, and Option B, which has a 15% annual return. However, Option B also has a 20% chance of defaulting. What is the expected return on investment for Option B?
Correct A. 12%
B. 15%
C. 18%
D. 20%

Correct Answer: A

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Question 18 View Details
A firm is considering a new marketing strategy that involves increasing its advertising budget by 20%. However, the firm also expects a 10% decrease in sales due to increased competition. What is the net effect on the firm's revenue?
A. 10% increase
B. 5% decrease
C. 5% increase
Correct D. 10% decrease

Correct Answer: D

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Question 19 View Details
A company is considering a new product launch. The product has a 20% chance of being a success, and if it is successful, it will generate a revenue of ₦100 million. However, if it fails, it will result in a loss of ₦50 million. What is the expected value of the product launch?
Correct A. ₦10 million
B. ₦20 million
C. ₦30 million
D. ₦40 million

Correct Answer: A

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Question 20 View Details
A firm is considering a new business venture that involves investing in a new technology. The technology has a 30% chance of being successful, and if it is successful, it will generate a revenue of ₦200 million. However, if it fails, it will result in a loss of ₦100 million. What is the expected value of the business venture?
Correct A. ₦60 million
B. ₦70 million
C. ₦80 million
D. ₦90 million

Correct Answer: A

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Question 21 View Details
A company's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). Which of the following statements is true about the accounting equation?
Correct A. Assets = Liabilities + Equity
B. Assets = Liabilities - Equity
C. Assets = Equity - Liabilities
D. Equity = Liabilities + Assets

Correct Answer: A

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Question 22 View Details
A firm's warehouse is used for storing goods. Which of the following is a benefit of using a warehouse?
A. Reduced transportation costs
B. Increased storage capacity
Correct C. Improved inventory management
D. Enhanced customer service

Correct Answer: C

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Question 23 View Details
A company uses the just-in-time (JIT) inventory system. Which of the following is a characteristic of JIT?
A. High inventory levels
Correct B. Low inventory levels
C. Long lead times
D. High production costs

Correct Answer: B

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Question 24 View Details
A firm's transportation costs are high due to the distance between its warehouse and customers. Which of the following is a way to reduce transportation costs?
Correct A. Using a third-party logistics provider
B. Implementing a just-in-time inventory system
C. Reducing the distance between the warehouse and customers
D. Increasing the frequency of deliveries

Correct Answer: A

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Question 25 View Details
A company's communication strategy involves using social media to engage with customers. Which of the following is a benefit of using social media?
A. Increased brand awareness
B. Improved customer service
Correct C. Enhanced customer engagement
D. Reduced marketing costs

Correct Answer: C

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