POST UTME FUTA 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the producer surplus?
A. 100
B. 200
C. 300
D. 400
Question 2
A firm's marketing mix consists of four key elements: product, price, promotion, and place. What is the primary role of the product element in the marketing mix?
A. To create a unique selling proposition for the product.
B. To determine the price of the product.
C. To develop a promotional strategy for the product.
D. To decide on the distribution channels for the product.
Question 3
A company is considering the use of just-in-time (JIT) inventory management system. Which of the following is a major advantage of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Better customer service
Question 4
Determine the value of x in the equation: ( rac{1}{x} + rac{1}{x+1} = rac{1}{2} )
A. 1
B. 2
C. 3
D. 4
Question 5
A company has a sole trader business structure. What is the primary advantage of this structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. No tax benefits
Question 6
A company uses the just-in-time inventory system to manage its stock levels. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved customer service
C. Increased efficiency in production
D. Better forecasting of demand
Question 7
A company uses the road transport mode to deliver its products. What is the primary advantage of this mode?
A. Flexibility in routing
B. Reduced transportation costs
C. Improved security of goods
D. Increased speed of delivery
Question 8
A company is considering the use of a warehousing system to manage its inventory. Which of the following is a major advantage of warehousing?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Better customer service
Question 9
A company has two warehouses, A and B. Warehouse A has a capacity of 10,000 units and is currently 70% full, while Warehouse B has a capacity of 5,000 units and is currently 50% full. If the company receives an order for 8,000 units, which warehouse should it use to fulfill the order?
A. Warehouse A
B. Warehouse B
C. Both Warehouses A and B
D. Neither Warehouse A nor B
Question 10
A life insurance policy has a premium of ₦10,000 per annum. The policy pays a benefit of ₦500,000 in the event of the policyholder's death. What is the probability that the policyholder will die within the next 5 years?
A. 0.05
B. 0.10
C. 0.15
D. 0.20
Question 11
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the consumer surplus?
A. 100
B. 200
C. 300
D. 400
Question 12
A firm's break-even point is the point at which its total revenue equals its total fixed costs. What is the formula for calculating the break-even point?
A. \frac{Fixed\ Costs}{Selling\ Price + Variable\ Costs}
B. \frac{Fixed\ Costs}{Selling\ Price - Variable\ Costs}
C. \frac{Variable\ Costs}{Selling\ Price - Fixed\ Costs}
D. \frac{Selling\ Price}{Fixed\ Costs + Variable\ Costs}
Question 13
In a perfectly competitive market, the supply curve is typically represented by the law of increasing marginal costs. What is the primary reason for this relationship?
A. The law of increasing marginal costs is a result of the increasing scarcity of resources.
B. The law of increasing marginal costs is a result of the decreasing marginal utility of additional units produced.
C. The law of increasing marginal costs is a result of the increasing marginal cost of production due to the law of diminishing returns.
D. The law of increasing marginal costs is a result of the increasing price of raw materials.
Question 14
A company's Memorandum and Articles of Association are not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
A. The company is not recognized as a legal entity.
B. The company is not entitled to limited liability.
C. The company is not required to file tax returns.
D. The company is not eligible for government contracts.
Question 15
A company is considering the use of a foreign trade agreement to export its products to a foreign country. Which of the following is a major advantage of foreign trade?
A. Increased market share
B. Improved product quality
C. Reduced production costs
D. Increased competition

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: