POST UTME ELIZADE UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the law of diminishing marginal utility is most relevant to the production of which of the following goods?
A. Public Goods
B. Private Goods
C. Merchandise
D. Services
Question 2
In a production system with a fixed level of specialization, which of the following is a characteristic of the production function?
A. ( Q = f(K,L) )
B. ( Q = f(L) )
C. ( Q = f(K) )
D. ( Q = f(K,L) )
Question 3
A company uses a just-in-time inventory system to manage its stock levels. Which of the following is a benefit of this system?
A. Reduced inventory costs
B. Improved customer satisfaction
C. Increased production capacity
D. Better forecasting of demand
Question 4
A firm's working capital is the difference between its
A. current assets and current liabilities
B. fixed assets and current liabilities
C. total assets and total liabilities
D. net income and total expenses
Question 5
A firm is considering investing in a new marketing campaign. Which of the following is a key factor to consider when evaluating the campaign's potential return on investment?
A. Market size and growth rate
B. Competitor analysis and market share
C. Product life cycle and pricing strategy
D. Supply chain management and logistics
Question 6
A firm is considering the introduction of a new product line. The product requires a significant investment in marketing and advertising. What is the primary goal of this investment?
A. To increase brand awareness
B. To generate leads
C. To drive sales
D. To build customer loyalty
Question 7
A bank is considering the introduction of a new loan product. The product requires a significant investment in marketing and advertising. What is the primary goal of this investment?
A. To increase brand awareness
B. To generate leads
C. To drive sales
D. To build customer loyalty
Question 8
A consumer protection agency is investigating a complaint about a company's advertising practices. Which of the following is a key consideration for the agency?
A. Truthfulness and accuracy of advertising claims
B. Fairness and transparency of business practices
C. Compliance with relevant laws and regulations
D. Impact on consumer behavior and decision-making
Question 9
A company's articles of association is a document that outlines the
A. Objectives of the company
B. Structure of the company
C. Relationship between the company and its shareholders
D. Relationship between the company and its employees
Question 10
A firm's financial leverage is the ratio of its
A. total debt to total equity
B. total assets to total liabilities
C. net income to total assets
D. total revenue to total expenses
Question 11
A firm is considering investing in a new project that has a payback period of 3 years. The required rate of return on the project is 15%. What is the net present value (NPV) of the project?
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 12
A company's memorandum of association is a document that outlines the
A. Objectives of the company
B. Structure of the company
C. Relationship between the company and its shareholders
D. Relationship between the company and its employees
Question 13
A firm is considering two different production technologies. Technology A is more capital-intensive and has a higher level of productivity. Technology B is more labor-intensive and has a lower level of productivity. Which of the following is a correct statement about the choice between these two technologies?
A. The firm should choose Technology A because it has a higher level of productivity.
B. The firm should choose Technology B because it is more labor-intensive.
C. The firm should choose Technology A because it is more capital-intensive.
D. The firm should choose Technology B because it has a lower level of productivity.
Question 14
A bank offers a loan to a customer at an interest rate of 12% per annum. The loan is repayable in 5 years. What is the total interest paid by the customer?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 15
A company uses a just-in-time inventory system. Which of the following is a benefit of this system?
A. Reduced inventory costs
B. Improved product quality
C. Increased production capacity
D. Enhanced customer satisfaction

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