Post Utme Joseph Ayo Babalola University 2023 Commerce Question 27

Practice objective / multiple choice question 27 from the 2023 Post Utme Joseph Ayo Babalola University Commerce examination.

Post Utme Joseph Ayo Babalola University 2023 Commerce Objective / Multiple Choice
Question 27 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2023 • COMMERCE • objective

A company's marketing strategy involves creating a new product line that caters to a niche market. The product line is expected to generate ₦500 million in revenue in the first year. However, the company's financial projections indicate that the product line will incur a loss of ₦200 million in the first year. What is the net effect on the company's financial position?

Answer Options

A. The company's financial position will improve by ₦300 million.
Correct Answer B. The company's financial position will deteriorate by ₦300 million.
C. The company's financial position will remain unchanged.
D. The company's financial position will improve by ₦100 million.
Correct Answer
B
Correct Option:
The company's financial position will deteriorate by ₦300 million.

About This Question

This is Post Utme Joseph Ayo Babalola University 2023 Commerce Question 27. It is one of the objective questions from the 2023 Post Utme Joseph Ayo Babalola University Commerce examination.

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