POST UTME ESUT 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's capital is divided into _______ shares.
A. 10
B. 100
C. 1000
D. 10000
Question 2
The concept of specialization in commerce refers to the process by which a firm or industry focuses on producing a specific product or service, thereby increasing its efficiency and productivity. Which of the following is a benefit of specialization in commerce?
A. Increased competition
B. Improved quality of products
C. Reduced production costs
D. Increased market share
Question 3
A warehouse is a place where goods are stored for _______ purposes.
A. short-term
B. long-term
C. temporary
D. permanent
Question 4
In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal revenue product of a firm's inputs. What is the consequence of this decrease on the firm's production level?
A. The firm will increase its production level to maximize profits.
B. The firm will decrease its production level to minimize costs.
C. The firm will maintain its current production level.
D. The firm will increase its production level to meet increasing demand.
Question 5
A company is considering the use of just-in-time (JIT) inventory management system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs.
B. Improved product quality.
C. Increased efficiency in production.
D. Reduced lead times.
Question 6
A firm is considering entering a new market in a foreign country. Which of the following is a key consideration in the decision-making process?
A. The firm's current market share
B. The firm's production costs
C. The firm's ability to adapt to local market conditions
D. The firm's financial resources
Question 7
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives a new shipment of 5,000 units, what is the new percentage of the warehouse that is full?
A. 40%
B. 50%
C. 60%
D. 70%
Question 8
A company is considering two different production processes for its new product. Process A involves a high level of labor and a low level of capital, while Process B involves a low level of labor and a high level of capital. If the company expects to produce 1000 units of the product, and the cost of labor for Process A is ₦200,000, and the cost of capital for Process B is ₦300,000, which process should the company choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 9
A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm hires 4 units of labor and 6 units of capital, what is the total cost of production?
A. ₦40
B. ₦60
C. ₦80
D. ₦100
Question 10
A firm's revenue is given by the equation R = 100x - 2x^2. What is the marginal revenue?
A. 100 - 4x
B. 100 + 4x
C. 100 - 2x
D. 100 + 2x
Question 11
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to produce 16 units of output, and the wage rate is ₦100 per unit of labor, and the rental rate of capital is ₦200 per unit of capital, how many units of labor should the firm hire?
A. 4 units
B. 8 units
C. 12 units
D. 16 units
Question 12
A firm is considering the use of a new distribution channel. Which of the following is a key advantage of using a new distribution channel?
A. It can increase sales.
B. It can reduce costs.
C. It can improve customer service.
D. It can increase market share.
Question 13
A sole trader's business is considered a separate legal entity from its owner. Which of the following is a characteristic of a sole trader's business?
A. Unlimited liability
B. Separate legal entity
C. No partnership
D. No limited liability
Question 14
A policyholder purchases a life insurance policy with a sum assured of ₦1,000,000. The policyholder dies after 5 years. The policy pays out the sum assured. Which of the following is a requirement for the policy to pay out?
A. The policyholder must have paid all premiums
B. The policyholder must have been alive for the entire policy term
C. The policyholder must have provided proof of death
D. The policyholder must have been a citizen of Nigeria
Question 15
A firm is considering the use of market research to gather information about its target market. Which of the following is a key type of market research?
A. Primary market research.
B. Secondary market research.
C. Qualitative market research.
D. Quantitative market research.

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