POST UTME IMS U 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank wants to offer a loan to a customer who has a credit score of 600. The bank's lending policy requires a minimum credit score of 700. What is the best course of action?
A. Approve the loan
B. Deny the loan
C. Request additional information from the customer
D. Offer a higher interest rate
Question 2
A risk management strategy that involves transferring risk to another party is known as?
A. Diversification
B. Hedging
C. Insurance
D. Speculation
Question 3
A company's marketing strategy involves creating a brand image that is perceived as luxurious and high-end. This approach is an example of
A. product differentiation
B. segmentation
C. positioning
D. target marketing
Question 4
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following statements best describes the opportunity cost of producing a good?
A. The amount of another good that could be produced with the same resources
B. The amount of labor required to produce the good
C. The amount of capital required to produce the good
D. The amount of time required to produce the good
Question 5
A company's marketing mix can be described as a combination of which four elements?
A. Product, Price, Place, Promotion
B. Product, Price, Place, People
C. Product, Price, Promotion, People
D. Product, Place, Promotion, People
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the firm wants to produce 100 units of output, how much labor should it hire if it has 16 units of capital?
A. 8
B. 16
C. 32
D. 64
Question 7
A producer specializes in the production of a single product. What is the primary advantage of this specialization?
A. Increased efficiency
B. Reduced costs
C. Improved quality
D. Increased market share
Question 8
A company's articles of association is a document that outlines the?
A. Objectives of the company
B. Rights and duties of shareholders
C. Rights and duties of directors
D. Rights and duties of employees
Question 9
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve
Question 10
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 11
A firm uses an insurance policy to mitigate its risks. The policy covers losses due to natural disasters. If the firm experiences a loss due to a natural disaster, what is the expected impact on its financial statements?
A. Financial statements will show a loss
B. Financial statements will show a gain
C. Financial statements will remain unchanged
D. Financial statements will fluctuate
Question 12
A consumer's indifference curve is given by U = 2X1 + 3X2, where U is the utility and X1 and X2 are the quantities consumed. If the consumer's income is ₦1000, and the prices of the two goods are ₦10 and ₦20 respectively, how much of good 2 should the consumer buy if they want to maximize their utility?
A. 5
B. 10
C. 15
D. 20
Question 13
A consumer's budget constraint is given by P1X1 + P2X2 = I, where P1 and P2 are the prices of two goods, X1 and X2 are the quantities consumed, and I is the consumer's income. If the consumer's income is ₦1000, and the prices of the two goods are ₦10 and ₦20 respectively, how much of good 2 should the consumer buy if they want to buy 10 units of good 1?
A. 5
B. 10
C. 15
D. 20
Question 14
The concept of comparative advantage in international trade was first introduced by which economist?
A. Adam Smith
B. David Ricardo
C. Thomas Malthus
D. John Maynard Keynes
Question 15
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
C. Sole Proprietorship
D. Cooperative Society

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