POST UTME IGBINEDION UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering the introduction of a new product line. The production manager has estimated that the cost of producing the product will be ₦100 per unit in the first year, increasing by 15% each year for the next 5 years. If the company wants to minimize its costs, which of the following production strategies should it adopt?
A. Increase the production level by 10% each year
B. Decrease the production level by 10% each year
C. Maintain the same production level throughout the 5-year period
D. Increase the production level by 20% in the first year and maintain it at that level for the next 4 years
Question 2
A company has a policy of paying its employees a bonus of 10% of their annual salary. If an employee's annual salary is ₦500,000, what is the bonus amount?
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 3
A company is considering the introduction of a new product line. The marketing manager has estimated that the demand for the product will be 1000 units in the first year, increasing by 10% each year for the next 5 years. If the company wants to maximize its profits, which of the following marketing strategies should it adopt?
A. Increase the price of the product by 10% each year
B. Decrease the price of the product by 10% each year
C. Maintain the same price for the product throughout the 5-year period
D. Increase the price of the product by 20% in the first year and maintain it at that level for the next 4 years
Question 4
The concept of specialization in production is closely related to the idea of division of labor. Explain how the division of labor contributes to the efficiency of production.
A. It increases the productivity of workers by allowing them to focus on a single task.
B. It reduces the cost of production by minimizing the use of resources.
C. It improves the quality of products by allowing workers to specialize in specific tasks.
D. It increases the demand for products by making them more attractive to consumers.
Question 5
In a perfectly competitive market, the supply curve is downward-sloping because firms are willing to produce more at a lower price due to the law of increasing opportunity costs. However, this is not the case in a perfectly competitive market with a fixed supply of resources. What is the name of this market structure?
A. Monopolistic Competition
B. Oligopoly
C. Perfect Competition
D. Monopoly
Question 6
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. Free gift with purchase
D. Loyalty program
Question 7
A company is considering the introduction of a new product line. The marketing manager has estimated that the demand for the product will be 1000 units in the first year, increasing by 10% each year for the next 5 years. If the company wants to maximize its profits, which of the following marketing strategies should it adopt?
A. Increase the price of the product by 10% each year
B. Decrease the price of the product by 10% each year
C. Maintain the same price for the product throughout the 5-year period
D. Increase the price of the product by 20% in the first year and maintain it at that level for the next 4 years
Question 8
What is the primary objective of the International Chamber of Commerce (ICC) in its role as a facilitator of international trade?
A. To promote the interests of multinational corporations
B. To facilitate the exchange of goods and services between countries
C. To provide a framework for the resolution of international trade disputes
D. To regulate the activities of international trade organizations
Question 9
A company exports goods worth ₦10,000,000 to a foreign country. If the exchange rate is 1 USD = ₦500, what is the value of the exports in USD?
A. ₦20,000,000
B. ₦25,000,000
C. ₦30,000,000
D. ₦35,000,000
Question 10
A company has a warehouse with a capacity to store 1000 units of goods. The warehouse is currently 75% full. If 150 units of goods are added to the warehouse, what is the new percentage of the warehouse that is full?
A. 50%
B. 60%
C. 70%
D. 75%
Question 11
A firm is considering the introduction of a new product line. The production manager has estimated that the cost of producing the product will be ₦100 per unit in the first year, increasing by 15% each year for the next 5 years. If the company wants to minimize its costs, which of the following production strategies should it adopt?
A. Increase the production level by 10% each year
B. Decrease the production level by 10% each year
C. Maintain the same production level throughout the 5-year period
D. Increase the production level by 20% in the first year and maintain it at that level for the next 4 years
Question 12
A sole trader business has a profit of ₦200,000 and a loss of ₦50,000 in two consecutive years. What is the net profit?
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 13
A warehouse has a storage capacity of 10,000 units. If the warehouse is currently 70% full, and 500 new units are received, what is the new percentage of capacity?
A. 60%
B. 65%
C. 70%
D. 75%
Question 14
A company is considering the introduction of a new product line. The product requires a significant investment in production facilities and marketing. Which of the following is a key consideration for the company in its decision-making process?
A. The potential return on investment
B. The impact on the company's market share
C. The effect on the company's cash flow
D. The influence on the company's organizational structure
Question 15
A consumer purchases a product online and pays for it using a credit card. The consumer later discovers that the product is defective. Which of the following laws protects the consumer in this situation?
A. Consumer Protection Act
B. Electronic Transactions Act
C. Banking and Other Financial Institutions Act
D. Companies and Allied Matters Act

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