POST UTME NOUN 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering the introduction of a new product. The product is expected to generate significant revenue, but it also poses a risk to the environment. Which of the following is the most appropriate decision for the company?
A. To proceed with the introduction of the product
B. To conduct a thorough environmental impact assessment
C. To abandon the project due to the risk
D. To seek the advice of a consultant
Question 2
A company is considering the introduction of a new product line. The product line is expected to generate ₦5 million in revenue in the first year, with a growth rate of 10% per annum for the next three years. What is the present value of the expected cash flows from the product line, assuming a discount rate of 12%?
A. ₦1,500,000
B. ₦2,000,000
C. ₦3,500,000
D. ₦4,000,000
Question 3
A sole trader has been operating a business for several years. The business has been profitable, but the sole trader has been experiencing difficulty in managing the business's finances. What is the appropriate action for the sole trader to take?
A. Hire an accountant
B. Take out a loan
C. Sell the business
D. Continue to manage the finances alone
Question 4
A company's marketing strategy involves a 4P approach. Which of the following is NOT one of the 4Ps?
A. Product
B. Price
C. Place
D. Profit
Question 5
In a perfectly competitive market, the supply curve is perfectly elastic. What is the implication of this for the firm's profit-maximizing output?
A. The firm will produce at the minimum point of the average cost curve.
B. The firm will produce at the point where the marginal revenue curve intersects the marginal cost curve.
C. The firm will produce at the maximum point of the average revenue curve.
D. The firm will produce at the minimum point of the average revenue curve.
Question 6
A company's insurance policy has a deductible of ₦10,000. If it makes a claim of ₦50,000, what is the amount the insurance company will pay?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 7
A firm's revenue function is given by the equation R(q) = 20q - 2q^2. What is the firm's marginal revenue when it produces 4 units of output?
A. ₦60
B. ₦80
C. ₦100
D. ₦120
Question 8
A company has a warehouse with a storage capacity of 10,000 units. The company receives a new shipment of 5,000 units. What is the new storage capacity?
A. 10,000
B. 15,000
C. 20,000
D. 25,000
Question 9
A warehouse is a place where goods are stored for
A. Manufacturing
B. Transportation
C. Storage
D. Distribution
Question 10
A company's financial statements show a net income of ₦100,000 and a total assets of ₦500,000. What is the return on assets (ROA) of the company?
A. 10%
B. 15%
C. 20%
D. 25%
Question 11
A company's sole trader is considering investing in a new business venture. The venture has a high potential for return on investment, but it also has a high risk of failure. What type of risk is the company facing?
A. Strategic risk
B. Operational risk
C. Financial risk
D. Compliance risk
Question 12
A consumer protection agency has received complaints about a company's unfair business practices. The agency has gathered evidence that the company has been engaging in price-fixing, which is a violation of consumer protection laws. What is the appropriate action for the agency to take?
A. File a lawsuit against the company
B. Issue a warning to the company
C. Conduct an investigation into the company's practices
D. Neglect the complaint
Question 13
A marketing strategy is a plan that outlines how a company will
A. Increase sales
B. Decrease costs
C. Improve customer service
D. Develop new products
Question 14
A firm's marginal cost curve is given by the equation MC = 2q + 3. If the firm produces 5 units of output, what is its marginal cost?
A. ₦15
B. ₦20
C. ₦25
D. ₦30
Question 15
A commercial bank's primary function is to act as a "warehouse" for its customers' funds. Which of the following best describes this function?
A. To provide loans to its customers
B. To act as a custodian of its customers' funds
C. To facilitate the transfer of funds between customers
D. To provide investment advice to its customers

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