POST UTME IGBINEDION UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's break-even point is the point at which its
A. total revenue equals its fixed costs
B. total revenue equals its variable costs
C. total revenue equals its total costs
D. total revenue equals its contribution margin
Question 2
A company is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased revenue
B. Reduced competition
C. Improved brand image
D. Access to new markets
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the firm wants to produce 100 units of output, how many labor hours and capital units should it use?
A. L = 100, K = 100
B. L = 400, K = 400
C. L = 1600, K = 1600
D. L = 6400, K = 6400
Question 4
A company is considering a new marketing strategy that involves partnering with a popular social media influencer. The influencer has a large following and is known for promoting products that align with the company's target audience. However, the influencer's fees are high, and the company is unsure if the partnership will generate sufficient returns on investment. What type of risk is the company facing?
A. Financial risk
B. Reputation risk
C. Operational risk
D. Strategic risk
Question 5
A company's financial statements show that its current ratio is 2.5, its debt-to-equity ratio is 0.8, and its return on equity is 12%. What can be inferred about the company's financial health?
A. The company is financially healthy and has a strong ability to pay its debts.
B. The company is financially distressed and has a high risk of default.
C. The company's financial health is uncertain and requires further analysis.
D. The company's financial health is not relevant to its ability to pay its debts.
Question 6
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300, respectively. If the consumer's indifference curves are convex to the origin, what is the optimal bundle of goods that the consumer will choose?
A. A = 2, B = 3
B. A = 3, B = 2
C. A = 4, B = 1
D. A = 1, B = 4
Question 7
A risk management strategy involves diversifying investments to minimize potential losses. What is the term for this strategy?
A. Hedging
B. Diversification
C. Speculation
D. Risk Aversion
Question 8
In a sole proprietorship, the owner's personal assets are not protected from business liabilities. What is the term for this lack of separation?
A. Separation of Assets
B. Limited Liability
C. Unlimited Liability
D. Separation of Ownership
Question 9
The concept of 'Gresham's Law' in International Trade implies that:
A. Bad money drives out good money
B. Good money drives out bad money
C. Trade deficits lead to economic growth
D. Trade surpluses lead to economic growth
Question 10
A risk management strategy involves the use of derivatives to hedge against potential losses. What type of derivative is commonly used for this purpose?
A. Futures contract
B. Options contract
C. Forward contract
D. Swap agreement
Question 11
A company's financial statements are audited by an independent auditor. What is the primary purpose of this audit?
A. To verify the company's financial statements
B. To provide an opinion on the company's financial health
C. To identify areas for improvement in the company's financial management
D. To provide a guarantee that the company's financial statements are accurate
Question 12
A foreign trade agreement between two countries involves the exchange of goods and services. What is the term for this exchange?
A. Import
B. Export
C. Trade
D. Barter
Question 13
A firm is considering investing in a new project. The project has a net present value (NPV) of ₦100,000 and a payback period of 5 years. What is the opportunity cost of investing in this project?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 14
A company has a fleet of 10 vehicles, each with a capacity of 5 tons. If the company operates for 20 days in a month, what is the total tonnage transported for the month?
A. 1,000 tons
B. 2,000 tons
C. 3,000 tons
D. 4,000 tons
Question 15
A marketing manager wants to advertise a product on social media. The manager has a budget of ₦50,000 and wants to reach a minimum of 10,000 people. If the cost per impression is ₦5, how many impressions can the manager achieve?
A. 5,000 impressions
B. 10,000 impressions
C. 15,000 impressions
D. 20,000 impressions

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: