POST UTME MADONNA UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the company expects to sell 10,000 units of the product per month, and the cost of production is ₦500 per unit, what is the total cost of the product under Strategy A?
A. ₦5,000,000
B. ₦5,500,000
C. ₦6,000,000
D. ₦6,500,000
Question 2
A company has a share capital of ₦1,000,000 divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 3
A company's marketing strategy involves creating a product line extension by introducing a new product that is similar to its existing product. This is an example of which of the following marketing strategies?
A. Product Line Extension
B. Market Segmentation
C. Product Differentiation
D. Market Development
Question 4
In a just-in-time (JIT) inventory system, what is the primary goal of the reorder point?
A. To minimize inventory costs
B. To maximize inventory turnover
C. To ensure that inventory levels are always at a minimum
D. To reduce the risk of stockouts
Question 5
A company's marketing mix includes product, price, place, and promotion. Which of the following is NOT a part of the marketing mix?
A. Product
B. Price
C. Place
D. Research and Development
Question 6
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA). Which of the following is a characteristic of a sole trader's business?
A. The business is owned by one person
B. The business is owned by two or more people
C. The business is owned by a group of people
D. The business is owned by a company
Question 7
A company purchases a liability insurance policy for ₦50,000. The policy covers a maximum of ₦200,000 in case of a loss. If the company suffers a loss of ₦150,000, what is the amount paid by the insurance company?
A. ₦0
B. ₦50,000
C. ₦100,000
D. ₦150,000
Question 8
A company is considering two different advertising strategies: Strategy A, which involves a high upfront cost but generates a large number of leads, and Strategy B, which involves a lower upfront cost but generates a smaller number of leads. Which strategy is more likely to be effective in the long run?
A. Strategy A, because it generates a large number of leads
B. Strategy B, because it involves a lower upfront cost
C. Strategy A, because it is more likely to generate a high return on investment
D. Strategy B, because it is more likely to be cost-effective
Question 9
A company uses the following transportation modes: road, rail, and air. Which of the following is an example of a transportation cost?
A. Fuel Cost
B. Labor Cost
C. Maintenance Cost
D. Insurance Cost
Question 10
In a perfectly competitive market, the law of diminishing marginal utility is most relevant to the production of which of the following goods?
A. Giffen goods
B. Normal goods
C. Inferior goods
D. Veblen goods
Question 11
A company is considering two different warehouse layouts for its new distribution center. Layout A has a rectangular shape with dimensions 100m x 50m, while Layout B has a square shape with dimensions 80m x 80m. If the company wants to maximize storage capacity, which layout should it choose?
A. Layout A
B. Layout B
C. Both layouts have the same storage capacity
D. Neither layout is suitable for maximizing storage capacity
Question 12
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. 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 13
A company's production process involves the following steps: raw material extraction, processing, and packaging. Which of the following is an example of a production cost?
A. Raw Material Cost
B. Labor Cost
C. Packaging Cost
D. Overhead Cost
Question 14
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦1,000,000, how much cash must it reserve?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 15
A firm's revenue is calculated by multiplying the price per unit by the number of units sold. If a firm sells 100 units at 20 each, its total revenue is
A. 1,500
B. 2,000
C. 2,500
D. 3,000

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