Practice Post UTME JOSEPH AYO BABALOLA UNIVERSITY commerce 2018 Past Questions

Question 1

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of labor hours, and H is the number of hours of capital used. If the firm wants to produce 16 units of output, and it has 4 labor hours available, how many hours of capital should it use?

A. 4

B. 8

Correct C. 16

D. 32

Correct Answer: C

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Question 2

A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment of ₦10 million, but it is expected to generate ₦20 million in revenue per year for 5 years. Strategy B involves a low initial investment of ₦2 million, but it is expected to generate ₦15 million in revenue per year for 3 years. Which strategy should the company choose?

Correct A. Strategy A

B. Strategy B

C. Both strategies are equally profitable

D. Neither strategy is profitable

Correct Answer: A

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Question 3

A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what price should it charge?

A. ₦10

B. ₦20

Correct C. ₦25

D. ₦30

Correct Answer: C

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Question 4

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of labor hours, and H is the number of hours of capital used. If the firm wants to produce 16 units of output, and it has 4 labor hours available, how many hours of capital should it use?

A. 4

B. 8

Correct C. 16

D. 32

Correct Answer: C

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Question 5

A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment of ₦10 million, but it is expected to generate ₦20 million in revenue per year for 5 years. Strategy B involves a low initial investment of ₦2 million, but it is expected to generate ₦15 million in revenue per year for 3 years. Which strategy should the company choose?

Correct A. Strategy A

B. Strategy B

C. Both strategies are equally profitable

D. Neither strategy is profitable

Correct Answer: A

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Question 6

The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?

A. To promote consumer awareness and education

Correct B. To investigate consumer complaints and take enforcement action

C. To provide consumer counseling and mediation services

D. To conduct research on consumer behavior and trends

Correct Answer: B

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Question 7

A company is considering launching a new product in the Nigerian market. What type of market research would be most appropriate for this purpose?

Correct A. Primary research

B. Secondary research

C. Qualitative research

D. Quantitative research

Correct Answer: A

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Question 8

A sole trader is considering expanding their business by hiring additional staff. What type of business organization would be most suitable for this purpose?

A. Partnership

Correct B. Limited company

C. Sole trader

D. Cooperative society

Correct Answer: B

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Question 9

A company is experiencing difficulties in managing its inventory. What type of inventory control system would be most effective in this situation?

A. Just-in-time inventory system

Correct B. Economic order quantity (EOQ) system

C. Material requirements planning (MRP) system

D. Total quality management (TQM) system

Correct Answer: B

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Question 10

A company is considering launching a new product in the Nigerian market. What type of advertising strategy would be most effective for this purpose?

A. Print advertising

Correct B. Electronic advertising

C. Direct marketing

D. Public relations

Correct Answer: B

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Question 11

A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary benefit of a USP?

A. Increased market share

B. Improved brand recognition

Correct C. Enhanced customer loyalty

D. Reduced production costs

Correct Answer: C

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Question 12

A company is considering two different marketing channels to reach its target audience. Channel A has a higher fixed cost but a lower variable cost, while Channel B has a lower fixed cost but a higher variable cost. Which channel should the company choose if it expects to sell 100 units?

Correct A. Channel A

B. Channel B

C. Both channels are equally profitable

D. Neither channel is profitable

Correct Answer: A

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Question 13

A firm's break-even point (BEP) is the point at which its total revenue equals its total fixed costs. If a firm's BEP is 500 units and its selling price is ₦100 per unit, what is the total fixed cost?

A. ₦50,000

Correct B. ₦75,000

C. ₦100,000

D. ₦125,000

Correct Answer: B

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Question 14

A firm's marketing mix involves the 4 Ps: product, price, promotion, and place. Which of the following is NOT one of the 4 Ps?

A. Product

B. Price

C. Promotion

Correct D. Packaging

Correct Answer: D

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Question 15

A firm's supply chain involves the movement of goods from raw materials to end customers. Which of the following is a type of supply chain risk?

Correct A. Operational risk

B. Financial risk

C. Strategic risk

D. Reputational risk

Correct Answer: A

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Question 16

A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary benefit of a USP?

A. Increased market share

B. Improved brand recognition

Correct C. Enhanced customer loyalty

D. Reduced production costs

Correct Answer: C

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Question 17

A company is considering two different marketing channels to reach its target audience. Channel A has a higher fixed cost but a lower variable cost, while Channel B has a lower fixed cost but a higher variable cost. Which channel should the company choose if it expects to sell 100 units?

Correct A. Channel A

B. Channel B

C. Both channels are equally profitable

D. Neither channel is profitable

Correct Answer: A

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Question 18

A firm's break-even point (BEP) is the point at which its total revenue equals its total fixed costs. If a firm's BEP is 500 units and its selling price is ₦100 per unit, what is the total fixed cost?

A. ₦50,000

Correct B. ₦75,000

C. ₦100,000

D. ₦125,000

Correct Answer: B

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Question 19

A firm's marketing mix involves the 4 Ps: product, price, promotion, and place. Which of the following is NOT one of the 4 Ps?

A. Product

B. Price

C. Promotion

Correct D. Packaging

Correct Answer: D

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Question 20

A firm's supply chain involves the movement of goods from raw materials to end customers. Which of the following is a type of supply chain risk?

A. Operational risk

B. Financial risk

C. Strategic risk

D. Reputational risk

Correct Answer: VIEW ANSWER

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Question 21

A bank's decision to increase interest rates on savings accounts may have a ripple effect on the entire economy. Which of the following is a likely consequence of this action?

A. Increased consumer spending

B. Reduced inflation

Correct C. Decreased economic growth

D. Increased business investment

Correct Answer: C

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Question 22

A company's marketing strategy involves creating a sense of urgency among customers to purchase its products. Which of the following tactics is most likely to be used?

Correct A. Limited-time offer

B. Free trial

C. Discounts

D. Loyalty program

Correct Answer: A

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Question 23

A consumer protection agency is investigating a complaint about a company's unfair business practices. Which of the following is a likely action the agency may take?

A. Issue a warning letter

B. Conduct a market survey

Correct C. Impose a fine

D. Order a product recall

Correct Answer: C

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Question 24

A company's insurance policy covers damages to its property in the event of a natural disaster. Which of the following is a likely type of insurance policy?

A. Liability insurance

Correct B. Property insurance

C. Business interruption insurance

D. Workers' compensation insurance

Correct Answer: B

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Question 25

A transportation company is considering investing in a new fleet of vehicles. Which of the following is a likely factor the company should consider?

A. Fuel efficiency

Correct B. Maintenance costs

C. Environmental impact

D. Employee safety

Correct Answer: B

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