POST UTME MOUNTAIN TOP UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a production process that involves the use of a machine. Which of the following is a key factor to consider in the design of the machine?
A. Efficiency
B. Safety
C. Reliability
D. Cost-effectiveness
Question 2
A company is considering the introduction of a new product line. Which of the following is a key factor to consider in the decision-making process?
A. Market demand
B. Production costs
C. Marketing strategy
D. Financial resources
Question 3
A producer's production function is given by Q = 2L^0.5 * K^0.5. What is the marginal product of labor (MPL) when L = 4 and K = 9?
A. 1
B. 2
C. 3
D. 4
Question 4
A firm's cost function is given by C(x) = 2x^2 + 10x + 5. If the firm produces 25 units, what is the total cost?
A. ₦1250
B. ₦1500
C. ₦1750
D. ₦2000
Question 5
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
B. Limited time offer
C. Free gift
D. Discount
Question 6
A consumer protection agency has received a complaint about a company's unfair business practices. Which of the following is a possible action the agency can take?
A. Issue a warning letter to the company
B. Conduct an investigation into the company's practices
C. Impose a fine on the company
D. Refer the case to the relevant regulatory authority
Question 7
A consumer has purchased a product that has a defect. Which of the following is a key right of the consumer under consumer protection law?
A. The right to a refund
B. The right to repair
C. The right to compensation
D. The right to a replacement
Question 8
A company's marketing strategy involves creating a new product line. Which of the following is a key consideration in the product development process?
A. Market research and analysis
B. Product positioning and branding
C. Supply chain management and logistics
D. Financial planning and budgeting
Question 9
A firm's profit function is given by \pi = R - COGS. If the firm's current revenue is R = 64 and the firm's current COGS is COGS = 16, what is the firm's current profit?
A. 32
B. 48
C. 64
D. 80
Question 10
A company's inventory system uses a first-in, first-out (FIFO) method. If the company has 100 units of a product in stock, and 20 units are sold, what is the new quantity of the product in stock?
A. 80
B. 90
C. 100
D. 120
Question 11
The concept of 'Giffen Goods' in economics is associated with the law of demand. Which of the following is a characteristic of Giffen Goods?
A. The demand for Giffen Goods increases as income increases.
B. The demand for Giffen Goods decreases as income decreases.
C. The demand for Giffen Goods increases as income decreases.
D. The demand for Giffen Goods decreases as income increases.
Question 12
A sole trader's business is considered a separate legal entity from its owner. What is the main reason for this separation?
A. To limit the owner's personal liability
B. To simplify tax compliance
C. To increase the business's creditworthiness
D. To reduce the owner's control over the business
Question 13
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. If the company uses a first-in, first-out (FIFO) inventory system, what is the cost of the units shipped to the customer?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,200,000
Question 14
A company is considering the use of a sole trader business structure. Which of the following is a key advantage of this structure?
A. Easy to set up
B. Low administrative costs
C. Flexibility in decision-making
D. Limited liability
Question 15
A warehouse manager wants to optimize storage space. Which of the following storage systems would be most effective?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. FIFO with a Twist
D. LIFO with a Twist

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