POST UTME MADONNA UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two different transportation modes to move its products from the factory to the customer. Mode A costs ₦100 per unit and has a capacity of 100 units per day, while Mode B costs ₦150 per unit and has a capacity of 200 units per day. If the firm needs to transport 300 units per day, which mode should it use?
A. Mode A
B. Mode B
C. Both modes
D. Neither mode
Question 2
A company is considering the use of outsourcing for its production needs. Which of the following is a key advantage of outsourcing?
A. Reduced labor costs
B. Improved product quality
C. Increased flexibility in production
D. Reduced capital expenditures
Question 3
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 75% full, with 7,500 units stored. If 2,000 more units are received, what percentage of the warehouse's capacity will be occupied?
A. 62.5%
B. 75%
C. 87.5%
D. 90%
Question 4
A country's foreign trade balance is given by the equation B = X - M, where B is the balance, X is the value of exports, and M is the value of imports. If the value of exports increases by 15% and the value of imports remains constant, by what percentage will the balance increase?
A. 10%
B. 12.5%
C. 15%
D. 20%
Question 5
A firm's production function is given by Q = 3L^(2/3)K^(1/3), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input increases by 20% and the capital input remains constant, by what percentage will the quantity produced increase?
A. 20%
B. 25%
C. 30%
D. 40%
Question 6
A company is considering a new marketing strategy that involves social media advertising. Which of the following is a potential risk associated with this strategy?
A. Increased brand awareness
B. Improved customer engagement
C. Negative publicity
D. Reduced marketing costs
Question 7
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy to establish
C. Flexibility in decision-making
D. Tax benefits
Question 8
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input increases by 25% and the capital input remains constant, by what percentage will the quantity produced increase?
A. 12.5%
B. 25%
C. 37.5%
D. 50%
Question 9
A company is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales force. If the company expects a 5% increase in sales revenue regardless of the strategy chosen, which strategy would result in a higher profit?
A. Strategy A
B. Strategy B
C. Both strategies result in the same profit
D. Neither strategy results in a higher profit
Question 10
A firm is considering two different inventory management systems to manage its inventory. System A is a just-in-time (JIT) system that orders and receives inventory just in time to meet customer demand, while System B is a periodic review system that orders inventory at fixed intervals. If the firm wants to minimize its inventory costs, which system should it choose?
A. System A
B. System B
C. Both systems
D. Neither system
Question 11
A company's memorandum of association is a document that outlines the company's
A. objectives and goals
B. powers and duties of the directors
C. rights and interests of the shareholders
D. terms and conditions of employment of the employees
Question 12
A company is considering two different advertising media to reach its target market. Media A has a cost of ₦500,000 and reaches 10,000 people, while Media B has a cost of ₦750,000 and reaches 20,000 people. If the company wants to reach at least 15,000 people, which media should it use?
A. Media A
B. Media B
C. Both media
D. Neither media
Question 13
A firm's stock control system uses a first-in-first-out (FIFO) inventory method. If the firm has 100 units of stock, and 20 units are sold, how many units of stock will be left?
A. 80
B. 90
C. 100
D. 120
Question 14
A firm's home trade involves importing 500 units of a product from a foreign country. If the firm expects a 5% increase in import costs, how much will it pay for the imported product?
A. ₦2500
B. ₦2625
C. ₦2750
D. ₦2875
Question 15
A sole trade business has a profit of ₦100,000 and a loss of ₦50,000 in two consecutive years. What is the net profit of the business over the two-year period?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000

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