POST UTME MADONNA UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm specializes in producing a single product, which is a type of commodity. The firm's production function is given by the equation: Q = 2L^0.5 * K^0.5, 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 the commodity, and it has 16 units of labor and 25 units of capital available, how many units of labor should it hire?
A. 8
B. 10
C. 12
D. 16
Question 2
A firm is considering exporting its product to a foreign market. The firm's export price is 100 per unit, and the foreign market demand is given by the equation: Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to sell 50 units of the product in the foreign market, what price should it charge?
A. 50
B. 75
C. 90
D. 100
Question 3
A company produces two products, X and Y, using two machines, A and B. The production process for product X requires 2 hours on machine A and 3 hours on machine B. The production process for product Y requires 3 hours on machine A and 2 hours on machine B. If the company has 12 hours of machine A time and 15 hours of machine B time available, how many units of product X and product Y can be produced?
A. 10 units of X and 15 units of Y
B. 15 units of X and 10 units of Y
C. 20 units of X and 5 units of Y
D. 5 units of X and 20 units of Y
Question 4
A sole trader's business is registered under which of the following?
A. Company Registration Number
B. Business Name Registration Number
C. Tax Identification Number
D. VAT Registration Number
Question 5
A foreign trade agreement between two countries involves the exchange of goods and services. However, one of the countries is not fulfilling its obligations under the agreement. What is the most likely consequence of this situation?
A. The agreement will be terminated
B. The non-compliant country will be fined
C. The compliant country will be rewarded
D. The agreement will be renegotiated
Question 6
A company is considering launching a new product line. The product's life cycle can be described using the following stages: introduction, growth, maturity, and decline. Which stage is characterized by a decrease in sales and a decrease in market share?
A. Introduction
B. Growth
C. Maturity
D. Decline
Question 7
A company's marketing strategy involves creating a new product line. What is the primary goal of this strategy?
A. To increase sales revenue
B. To reduce production costs
C. To improve brand image
D. To enter new markets
Question 8
A company's marketing strategy involves creating a new product line to appeal to a younger demographic. However, the product line is not successful, and the company incurs a significant loss. Which of the following marketing strategies is most likely to be responsible for this failure?
A. Market segmentation
B. Product differentiation
C. Target marketing
D. Positioning
Question 9
A company's Memorandum of Association is a document that contains the company's
A. Business Objectives
B. Share Capital Structure
C. Directors' Names and Addresses
D. All of the above
Question 10
A company exports goods to a foreign country. Which of the following is a type of foreign trade?
A. Import
B. Export
C. Domestic Trade
D. International Trade
Question 11
A bank's cash reserve ratio is 10%. If the bank has a cash reserve of ₦1,000,000, what is the maximum amount of loans it can give out?
A. ₦9,000,000
B. ₦10,000,000
C. ₦11,000,000
D. ₦12,000,000
Question 12
A consumer is considering purchasing a product. The product has a high price and a low quality. Which of the following factors would most likely influence the consumer's decision to purchase the product?
A. Price
B. Quality
C. Brand reputation
D. Marketing efforts
Question 13
A company is considering exporting its products to a foreign market. The company has a high level of expertise in the product and a low level of expertise in the foreign market. Which of the following strategies would be most appropriate for the company?
A. Exporting
B. Licensing
C. Franchising
D. Joint venture
Question 14
A sole trader's business is registered under the sole traders' register. What is the primary advantage of this registration?
A. Limited liability
B. Separate legal entity
C. Easy to set up
D. No need for annual returns
Question 15
A warehouse's inventory management system uses the First-In-First-Out (FIFO) method to track stock levels. Which of the following is a benefit of using this method?
A. Reduced Stock Obsolescence
B. Improved Stock Turnover
C. Increased Stock Levels
D. Decreased Stock Levels

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