POST UTME MADONNA UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering launching a new product. What type of market research is most relevant to this decision?
A. Competitor analysis
B. Market segmentation
C. Product life cycle analysis
D. SWOT analysis
Question 2
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. average revenue curve
C. marginal cost curve
D. average cost curve
Question 3
A company has a market share of 30% in a perfectly competitive market. If the market demand curve is given by Qd = 100 - 2P, and the market supply curve is given by Qs = 20 + 3P, what is the equilibrium price and quantity?
A. P = ₦20, Q = 40
B. P = ₦30, Q = 50
C. P = ₦40, Q = 60
D. P = ₦50, Q = 70
Question 4
A company is sued for violating the Consumer Protection Act. The company's defense is that the consumer was aware of the risks associated with the product. However, the consumer claims that the company failed to provide adequate warning labels. Which of the following is the most likely outcome?
A. The court will rule in favor of the company.
B. The court will rule in favor of the consumer.
C. The case will be dismissed due to lack of evidence.
D. The court will order the company to pay damages to the consumer.
Question 5
A company is considering exporting goods to a foreign country. What type of risk is the company exposed to?
A. Commercial risk
B. Currency risk
C. Country risk
D. Political risk
Question 6
The Consumer Protection Act of 1999 provides for the establishment of the Consumer Protection Council. What is the primary function of the Consumer Protection Council?
A. To promote consumer awareness and education
B. To investigate consumer complaints and prosecute offenders
C. To establish standards for consumer goods and services
D. To provide compensation to consumers for losses suffered
Question 7
A company's business involves creating and selling products. Which of the following is a type of business unit?
A. Sole trader
B. Partnership
C. Company
D. Cooperative
Question 8
The diagram below represents a production possibility frontier. If the economy is currently at point A, and the government decides to implement a policy that shifts the production possibility frontier to the right, what will happen to the opportunity cost of producing consumer goods?
A. increase
B. decrease
C. remain constant
D. become negative
Question 9
A company's business involves creating and selling products. Which of the following is a type of business unit?
A. Sole trader
B. Partnership
C. Company
D. Cooperative
Question 10
A company is considering outsourcing its production to a foreign supplier. The supplier has offered to supply the goods at a price of 10 per unit, which is 20% lower than the company's current production cost. However, the company's logistics manager has warned that the transportation costs will be higher due to the longer distance. What is the net cost savings to the company?
A. ₦1.5 million
B. ₦2 million
C. ₦2.5 million
D. ₦3 million
Question 11
A company's marketing strategy involves creating a sense of exclusivity to encourage customers to make a purchase. This tactic is an example of which of the following?
A. Scarcity principle
B. Loss aversion
C. Endowment effect
D. Social proof
Question 12
A company's marketing strategy involves creating a sense of urgency to encourage customers to make a purchase. This tactic is an example of which of the following?
A. Scarcity principle
B. Loss aversion
C. Endowment effect
D. Social proof
Question 13
A sole trader's business is registered with the Corporate Affairs Commission (CAC). Which of the following is a characteristic of a sole trader?
A. Limited liability
B. Unlimited liability
C. Separate legal entity
D. No partnership
Question 14
A sole trader is sued by a customer for breach of contract. The sole trader claims that the customer failed to pay for the goods as agreed. However, the customer claims that the goods were defective and did not meet the agreed specifications. Which of the following is the most likely outcome?
A. The court will rule in favor of the sole trader.
B. The court will rule in favor of the customer.
C. The case will be dismissed due to lack of evidence.
D. The court will order the sole trader to pay damages to the customer.
Question 15
A company has a business interruption insurance policy with a premium of ₦500,000. What is the maximum amount the company can claim in the event of a business interruption?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000

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