POST UTME NILE UNIVERSITY 2017 Commerce | Objective

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Question 1 View Details
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product will be?
A. a vertical line
B. a horizontal line
Correct C. a downward-sloping line
D. an upward-sloping line

Correct Answer: C

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Question 2 View Details
A company's financial statements show a net income of ₦150,000, but its cash flow statement shows a net cash outflow of ₦200,000. What is the most likely reason for this discrepancy?
A. The company has invested in new equipment
B. The company has paid off debts
Correct C. The company has made an error in its financial reporting
D. The company has experienced a decline in sales

Correct Answer: C

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Question 3 View Details
A sole trader has a business income of ₦500,000 and business expenses of ₦300,000. What is the sole trader's taxable profit?
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 4 View Details
A company has a market share of 30% in a competitive market. If the market demand is 10,000 units, what is the company's sales revenue?
A. ₦3,000,000
Correct B. ₦3,500,000
C. ₦4,000,000
D. ₦4,500,000

Correct Answer: B

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Question 5 View Details
A firm's production function is given by Q = 2L + 3K, where Q is output, L is labor, and K is capital. If the firm hires 5 units of labor and 3 units of capital, what is the output?
A. 10
Correct B. 15
C. 20
D. 25

Correct Answer: B

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Question 6 View Details
In a consumer protection context, what is the primary purpose of the Consumer Protection Act of 1999?
A. To regulate consumer credit
B. To protect consumers from unfair trade practices
C. To promote consumer education
Correct D. To establish consumer rights

Correct Answer: D

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Question 7 View Details
A company is considering entering a new market. Which of the following marketing strategies would be most appropriate for a new market entry?
A. Product differentiation
Correct B. Market segmentation
C. Competitor analysis
D. Market penetration

Correct Answer: B

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Question 8 View Details
A warehouse manager is responsible for maintaining a high level of inventory accuracy. Which of the following methods would be most effective for achieving this goal?
Correct A. Cycle counting
B. Physical inventory counts
C. Barcode scanning
D. Inventory management software

Correct Answer: A

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Question 9 View Details
A company is considering exporting its products to a foreign market. Which of the following factors would be most important to consider when making this decision?
A. Market size and growth rate
B. Competitor analysis
Correct C. Trade agreements and regulations
D. Transportation costs

Correct Answer: C

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Question 10 View Details
A company is considering implementing a new marketing strategy. Which of the following strategies would be most effective for increasing brand awareness?
Correct A. Social media marketing
B. Content marketing
C. Influencer marketing
D. Event marketing

Correct Answer: A

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Question 11 View Details
A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal assets.
A. The owner's personal assets are completely protected from business liabilities.
B. The owner's personal assets are partially protected from business liabilities.
Correct C. The owner's personal assets are completely exposed to business liabilities.
D. The owner's personal assets are not affected by business liabilities.

Correct Answer: C

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Question 12 View Details
A company's articles of association state that the company must maintain a minimum cash reserve of ₦500,000. If the company's current cash reserve is ₦300,000, what is the minimum amount of additional funds the company must raise?
Correct A. ₦100,000
B. ₦200,000
C. ₦500,000
D. ₦1,000,000

Correct Answer: A

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Question 13 View Details
A bank's reserve requirement is 10%. If the bank has ₦1,000,000 in deposits and a reserve requirement of 10%, what is the minimum amount of cash the bank must hold in reserve?
Correct A. ₦100,000
B. ₦200,000
C. ₦500,000
D. ₦1,000,000

Correct Answer: A

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Question 14 View Details
A country's balance of payments account shows a trade deficit of ₦1,000,000. If the country's foreign exchange reserves are ₦500,000, what is the minimum amount of foreign exchange the country must borrow to cover the trade deficit?
A. ₦500,000
B. ₦750,000
Correct C. ₦1,000,000
D. ₦1,250,000

Correct Answer: C

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Question 15 View Details
A company's cost of goods sold (COGS) is ₦500,000. If the company's selling price is ₦1,000,000 and the company sells 1,000 units, what is the company's gross profit?
A. ₦250,000
B. ₦500,000
Correct C. ₦750,000
D. ₦1,000,000

Correct Answer: C

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Question 16 View Details
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Nigeria producing oil and importing food
Correct B. Nigeria producing food and importing oil
C. Nigeria producing both oil and food
D. Nigeria producing neither oil nor food

Correct Answer: B

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Question 17 View Details
A company's marketing mix consists of four main elements: product, price, promotion, and place. Which of the following is a correct example of a product element?
A. A 30% discount on all products
Correct B. A new product launch
C. A change in the company's logo
D. A new store location

Correct Answer: B

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Question 18 View Details
A bank's balance sheet consists of two main components: assets and liabilities. Which of the following is a correct example of an asset?
Correct A. Cash in the bank's vault
B. A loan to a customer
C. A deposit account
D. A credit card

Correct Answer: A

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Question 19 View Details
A consumer's purchasing decision is influenced by several factors, including income, price, and advertising. Which of the following is a correct example of a consumer's income effect?
A. A decrease in income leading to a decrease in consumption
Correct B. An increase in income leading to an increase in consumption
C. A decrease in income leading to an increase in consumption
D. An increase in income leading to a decrease in consumption

Correct Answer: B

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Question 20 View Details
A business's financial statements include several key components, including the balance sheet, income statement, and cash flow statement. Which of the following is a correct example of a business's financial leverage?
Correct A. The use of debt financing to increase a business's assets
B. The use of equity financing to increase a business's assets
C. The use of cash to increase a business's assets
D. The use of credit to increase a business's assets

Correct Answer: A

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Question 21 View Details
A sole trader's business is considered a separate legal entity from its owner. However, the owner is personally liable for the business's debts. What is the name of this type of business?
Correct A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Cooperative

Correct Answer: A

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Question 22 View Details
A company's memorandum of association is a document that outlines the company's
A. objects
B. share capital
C. management structure
Correct D. all of the above

Correct Answer: D

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Question 23 View Details
A warehouse's stock control system is designed to track the movement of goods from receipt to dispatch. What is the name of this system?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. Just-In-Time (JIT)
Correct D. Economic Order Quantity (EOQ)

Correct Answer: D

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Question 24 View Details
A company's production process involves the conversion of raw materials into finished goods. What is the name of this process?
Correct A. Manufacturing
B. Assembly
C. Packaging
D. Quality Control

Correct Answer: A

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Question 25 View Details
A country's foreign trade involves the exchange of goods and services with other countries. What is the name of this type of trade?
A. Import
B. Export
C. Domestic Trade
Correct D. International Trade

Correct Answer: D

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