POST UTME MOUNTAIN TOP UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has the following budget constraint: 2x + 3y = 12. If the price of x is 2 and the price of y is 3, what is the maximum value of the firm's profit?
A. 24
B. 36
C. 48
D. 60
Question 2
A consumer protection agency receives a complaint about a company's unfair business practices. The agency's investigation reveals that the company has engaged in deceptive marketing practices, which have caused financial losses to several consumers. What is the most appropriate action for the agency to take?
A. Issue a warning to the company
B. Impose a fine on the company
C. Order the company to cease operations
D. Compensate the affected consumers
Question 3
A company's marketing strategy involves a mix of advertising and public relations. Which of the following best describes the primary goal of public relations in this context?
A. To create brand awareness
B. To generate leads
C. To build customer loyalty
D. To increase sales
Question 4
A company's financial statement shows a net loss of ₦500,000. What is the implication of this on the company's financial position?
A. The company's assets have increased
B. The company's liabilities have decreased
C. The company's equity has decreased
D. The company's cash flow has improved
Question 5
A company has a warehouse with a capacity to store 10,000 units of goods. The company uses a first-in-first-out (FIFO) inventory system. If 8,000 units of goods are already stored in the warehouse, and 2,000 units of new goods are received, what is the total number of units of goods stored in the warehouse after the new goods are received?
A. 10,000
B. 8,000
C. 12,000
D. 9,000
Question 6
A warehouse manager is responsible for maintaining inventory levels and ensuring timely delivery of goods to customers. What is the primary benefit of using a just-in-time (JIT) inventory system?
A. Reduced inventory costs
B. Improved supply chain efficiency
C. Increased customer satisfaction
D. Enhanced product quality
Question 7
A firm has a production function 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 uses 100 units of labor and 400 units of capital, what is the quantity produced?
A. 20
B. 40
C. 80
D. 160
Question 8
A sole trader's business is registered under the sole trader's name. What is the primary advantage of this type of business registration?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Flexibility in management
Question 9
A company is considering launching a new product line. The product's expected market share is 15% and the expected profit per unit is ₦500. However, the company also expects to incur a one-time setup cost of ₦1,500,000. What is the minimum number of units the company must sell to break even?
A. 10,000 units
B. 15,000 units
C. 20,000 units
D. 25,000 units
Question 10
A company's supply chain involves the transportation of goods from a factory to a warehouse. If the factory is located 200 km away from the warehouse and the company uses a truck that travels at an average speed of 60 km/h, how many hours will it take to transport the goods?
A. 3 hours
B. 4 hours
C. 5 hours
D. 6 hours
Question 11
A company has the following balance sheet: Assets = 100,000, Liabilities = 50,000, Equity = 50,000. What is the company's debt-to-equity ratio?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 12
A company's inventory management system uses the Economic Order Quantity (EOQ) model to determine the optimal order quantity. If the demand rate is 100 units per month, the ordering cost is ₦120 per order, and the holding cost is ₦10 per unit per month, what is the optimal order quantity?
A. 1000 units
B. 1200 units
C. 1500 units
D. 1800 units
Question 13
A company's marketing strategy involves a mix of product, price, place, and promotion. Which of the following is NOT a characteristic of a product-based marketing strategy?
A. High level of customization
B. Low level of customization
C. High level of standardization
D. Low level of standardization
Question 14
A company's financial statements show a significant increase in revenue, but a decrease in net income. What is the most likely explanation for this discrepancy?
A. Increased operating expenses
B. Depreciation and amortization expenses
C. Tax credits and incentives
D. Changes in accounting policies
Question 15
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following best describes the primary goal of this strategy?
A. To increase brand awareness
B. To generate leads and drive sales
C. To build customer loyalty and retention
D. To reduce marketing costs

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