POST UTME LEAD CITY UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a total revenue of ₦1,500,000 and a total cost of ₦1,200,000. What is the company's profit?
A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦50,000
Question 2
A company's marketing mix consists of the 4 Ps: product, price, place, and
A. promotion
B. people
C. process
D. physical distribution
Question 3
A consumer purchases a product online and pays for it using a credit card. The consumer is protected by which of the following laws?
A. Consumer Protection Act
B. Electronic Transactions Act
C. Banking and Other Financial Institutions Act
D. Insurance Act
Question 4
A company's break-even point is the point at which its total revenue equals its
A. total fixed costs
B. total variable costs
C. total costs
D. net income
Question 5
A firm's production function is given by the equation Q = 2L^2 + 5K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 100 units of output, and it has 20 units of labor available, how many units of capital should it hire?
A. 10
B. 15
C. 20
D. 25
Question 6
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a characteristic of an effective marketing mix?
A. Relevant to target market
B. Inconsistent with company's mission
C. Focused on customer needs
D. Measurable and achievable
Question 7
A firm's revenue function is given by the equation R = 2Q^2, where R is the total revenue and Q is the quantity sold. If the firm sells 10 units of output, what is the total revenue?
A. 20
B. 40
C. 60
D. 80
Question 8
A firm is considering two production levels: Level A, which requires an initial investment of 100,000 and produces 100 units per day, and Level B, which requires an initial investment of 200,000 and produces 200 units per day. If the firm expects to sell the units at 50 each, which production level will result in the highest profit?
A. Level A
B. Level B
C. Both production levels will result in the same profit
D. Neither production level will result in a significant profit
Question 9
A company's financial statements are prepared in accordance with the _______ Standards.
A. Generally Accepted Accounting Principles
B. International Financial Reporting Standards
C. Financial Reporting Standards
D. Accounting Standards
Question 10
The concept of 'moral hazard' in insurance is closely related to which of the following?
A. Adverse selection
B. Moral hazard
C. Risk aversion
D. Diversification
Question 11
A sole trader has a capital of ₦500,000 and a profit of ₦200,000. What is the sole trader's new capital?
A. ₦700,000
B. ₦600,000
C. ₦500,000
D. ₦400,000
Question 12
A consumer purchases a product with a price of ₦1,000 and a discount of 10%. What is the amount of the discount?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 13
A company has a total revenue of ₦2,000,000 and a total cost of ₦1,800,000. What is the company's profit?
A. ₦200,000
B. ₦100,000
C. ₦50,000
D. ₦0
Question 14
A company's marketing strategy involves creating a sense of urgency among its customers to purchase a product. This strategy is an example of which of the following?
A. Scarcity principle
B. Loss aversion principle
C. Endowment effect principle
D. Anchoring effect principle
Question 15
In a perfectly competitive market, the supply curve is typically represented by the law of supply, which states that as the price of a good increases, the quantity supplied also increases. However, this is not always the case. What is the name of the phenomenon that occurs when the quantity supplied decreases as the price increases?
A. Giffen Goods
B. Inferior Goods
C. Normal Goods
D. Veblen Goods

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