POST UTME CRAWFORD UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's break-even point is the point at which its total revenue equals its
A. total fixed costs
B. total variable costs
C. total costs
D. net income
Question 2
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
C. Improved inventory management
D. Enhanced customer service
Question 3
A firm is using the just-in-time (JIT) inventory system. Which of the following is a benefit of JIT?
A. Reduced inventory costs
B. Improved quality control
C. Increased production efficiency
D. Enhanced customer service
Question 4
A bank is offering a loan of ₦500,000 at an interest rate of 12% per annum. The loan is repayable in 5 years. What is the total interest paid over the 5-year period?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 5
A firm is considering launching a new product. The product will require an initial investment of ₦200 million and will generate annual profits of ₦50 million. What is the payback period on this investment?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
Question 6
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
C. Enhanced customer engagement
D. Reduced marketing costs
Question 7
A firm'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?
A. Assets = Liabilities + Equity
B. Assets = Liabilities - Equity
C. Assets = Equity - Liabilities
D. Equity = Liabilities + Assets
Question 8
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
C. Market risk
D. Liquidity risk
Question 9
The concept of specialization in production refers to the process by which a firm focuses on producing a specific product or service, thereby increasing its efficiency and productivity. Which of the following is a benefit of specialization in production?
A. Increased competition
B. Improved quality control
C. Reduced production costs
D. Enhanced product diversity
Question 10
A firm's supply curve is upward-sloping because as the price of its product increases, it
A. increases its production
B. decreases its production
C. increases its demand
D. decreases its demand
Question 11
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?
A. ₦10 million
B. ₦20 million
C. ₦30 million
D. ₦40 million
Question 12
A firm's insurance policy covers losses due to natural disasters. Which of the following is a type of insurance policy?
A. Liability insurance
B. Property insurance
C. Casualty insurance
D. Workers' compensation insurance
Question 13
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
C. Enhanced customer engagement
D. Reduced marketing costs
Question 14
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
B. 7,500
C. 8,500
D. 9,000
Question 15
In a perfectly competitive market, the supply curve is typically represented by the marginal cost curve. However, in a market with increasing marginal costs, the supply curve will shift to the left. What is the likely effect on the equilibrium price and quantity?
A. The equilibrium price will increase, and the equilibrium quantity will decrease.
B. The equilibrium price will decrease, and the equilibrium quantity will increase.
C. The equilibrium price will remain the same, and the equilibrium quantity will decrease.
D. The equilibrium price will increase, and the equilibrium quantity will increase.

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