POST UTME FUTA 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's cost function is given by C(q) = 2q^2 + 10q + 5. What is the firm's average cost function?
A. \overline{C}(q) = 2q + 10
B. \overline{C}(q) = 2q + 5
C. \overline{C}(q) = 2q^2 + 10q + 5
D. \overline{C}(q) = 2q^2 + 10q
Question 2
A country has a trade deficit of 100 million and a trade surplus of 50 million with its trading partners. What is the net trade balance?
A. -50 million
B. -100 million
C. 0
D. 50 million
Question 3
A company's marketing strategy involves creating a sense of urgency among customers to purchase a product. This strategy is an example of which of the following?
A. Scarcity principle
B. Limited-time offer
C. Loss aversion
D. Endowment effect
Question 4
A company's inventory management system uses a just-in-time (JIT) approach to minimize inventory levels. What is the primary benefit of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 5
A business owner wants to expand her operations to a new location. What type of business organization would she need to form to achieve this?
A. Sole proprietorship
B. Partnership
C. Limited liability company
D. Corporation
Question 6
A company is considering two different insurance policies to cover its business operations. Policy A has a premium of ₦150,000 and a deductible of ₦50,000. Policy B has a premium of ₦120,000 and a deductible of ₦20,000. If the company expects to incur a loss of ₦200,000, which policy would provide the greatest expected value?
A. Policy A
B. Policy B
C. Policy A and Policy B are equally valuable
D. Neither policy provides any value
Question 7
In a just-in-time (JIT) inventory system, what is the primary goal of the reorder point?
A. To minimize inventory costs
B. To maximize inventory turnover
C. To ensure that stockouts are avoided
D. To reduce lead times
Question 8
A firm is considering two different marketing strategies to promote its new product. Strategy A involves a ₦500,000 advertising campaign and a 10% discount on the product price. Strategy B involves a ₦300,000 advertising campaign and a 5% discount on the product price. If the firm expects to sell 10,000 units of the product, which strategy would result in the highest revenue?
A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective
Question 9
A company's stock is currently priced at ₦120 per share. If the company declares a 20% dividend, what is the new stock price?
A. ₦144
B. ₦128
C. ₦112
D. ₦96
Question 10
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, with 7,000 units stored. If 1,500 new units are received, what is the new storage capacity utilization?
A. 80%
B. 85%
C. 90%
D. 95%
Question 11
A firm has a warehouse with a storage capacity of 5,000 units. The warehouse is currently 60% full, with 3,000 units stored. If 1,200 new units are received, what is the new storage capacity utilization?
A. 65%
B. 70%
C. 75%
D. 80%
Question 12
A sole trader's business is considered a separate legal entity from its owner. However, the owner is personally liable for all business debts and obligations. What is the name of this type of business organization?
A. Sole Proprietorship
B. Partnership
C. Limited Liability Company
D. Cooperative
Question 13
A company is considering two marketing strategies: a 4% increase in advertising expenditure or a 2% increase in sales promotion expenditure. If the current advertising expenditure is ₦500,000 and the current sales promotion expenditure is ₦200,000, what is the total increase in marketing expenditure if the company chooses the first strategy?
A. ₦2,000
B. ₦4,000
C. ₦6,000
D. ₦8,000
Question 14
A company's marketing strategy involves creating a sense of exclusivity among customers to purchase a product. This strategy is an example of which of the following?
A. Scarcity principle
B. Limited-time offer
C. Exclusivity principle
D. Loss aversion
Question 15
A company's financial statements include a balance sheet, income statement, and cash flow statement. Which of the following is the primary purpose of the balance sheet?
A. To show the company's profitability
B. To show the company's liquidity
C. To show the company's financial position at a specific point in time
D. To show the company's cash flows

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