POST UTME ELIZADE UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal utility of the last unit consumed. This results in a decrease in the total utility of the last unit consumed. What is the correct interpretation of this phenomenon?
A. The law of diminishing marginal utility is a result of the law of supply and demand.
B. The law of diminishing marginal utility is a result of the law of diminishing returns.
C. The law of diminishing marginal utility is a result of the law of increasing costs.
D. The law of diminishing marginal utility is a result of the law of diminishing marginal utility itself.
Question 2
A company has a fleet of 10 trucks that transport goods from a warehouse to a distribution center. The company uses a routing algorithm to determine the most efficient route for each truck. If the company wants to minimize the total distance traveled by all trucks, what is the optimal routing strategy?
A. The company should assign each truck to a different route, and the routes should be as far apart as possible.
B. The company should assign each truck to a different route, and the routes should be as close together as possible.
C. The company should assign each truck to the same route, and the route should be as long as possible.
D. The company should assign each truck to the same route, and the route should be as short as possible.
Question 3
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?
A. Obtain a Certificate of Incorporation
B. File a Memorandum and Articles of Association
C. Publish a notice in the Gazette
D. Obtain a Business Name Certificate
Question 4
A company is considering outsourcing its production to a foreign country. What is the correct interpretation of this scenario?
A. The company is reducing its costs.
B. The company is increasing its costs.
C. The company is reducing its production.
D. The company is increasing its production.
Question 5
A company's marketing mix is a combination of the 4 Ps: Product, Price, Place, and Promotion. Which of the following is NOT a correct example of a product?
A. A new smartphone model.
B. A new restaurant menu.
C. A new car model.
D. A new software application.
Question 6
A company has a warehouse with a capacity of 1000 units. The warehouse is currently 75% full. If 150 units are added to the warehouse, what is the new percentage of capacity?
A. 60%
B. 65%
C. 70%
D. 75%
Question 7
A company has a warehouse with a capacity of 500 units. The company has 600 units of a product that needs to be stored in the warehouse. If the company uses a last-in-first-out (LIFO) inventory system, what is the probability that the first unit of the product stored in the warehouse will be the last unit to be sold?
A. 0.6
B. 0.4
C. 0.2
D. 0.8
Question 8
A company's financial statement shows a net income of ₦1,000,000 and a total equity of ₦5,000,000. What is the return on equity (ROE) of the company?
A. 20%
B. 25%
C. 30%
D. 35%
Question 9
A company has a risk management strategy that involves diversification. If the company has 3 assets with expected returns of 8%, 10%, and 12% respectively, and the correlation between the assets is 0.5, what is the expected return on the portfolio?
A. 9.5%
B. 10%
C. 10.5%
D. 11%
Question 10
A 'Transportation Mode' that involves the movement of goods by land is known as:
A. Rail Transport
B. Road Transport
C. Air Transport
D. Water Transport
Question 11
A firm's cost function is given by C = 100 + 2L + 3K. If the firm hires 5 units of labor and 10 units of capital, what is its total cost?
A. ₦250
B. ₦350
C. ₦450
D. ₦550
Question 12
A firm has a production function given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the new production function?
A. Q = 2.4L^(1/2)K^(1/2)
B. Q = 2.5L^(1/2)K^(1/2)
C. Q = 2.6L^(1/2)K^(1/2)
D. Q = 2.7L^(1/2)K^(1/2)
Question 13
A company's 'Marketing Mix' consists of the following elements:
A. Product, Price, Place, Promotion
B. Product, Price, Place, People
C. Product, Price, Promotion, Place
D. Product, Price, People, Place
Question 14
A firm has a production cost function given by C = 2Q + 100, where C is the cost and Q is the quantity produced. If the firm produces 50 units, what is the total cost?
A. 200
B. 250
C. 300
D. 350
Question 15
A company's sole trader is considering expanding its operations to a new location. However, the new location is in a high-risk area prone to natural disasters. What type of insurance policy would the sole trader most likely purchase to mitigate this risk?
A. Business Interruption Insurance
B. Liability Insurance
C. Property Insurance
D. Key Person Insurance

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