POST UTME OAU 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's break-even point is the point at which its total revenue equals its total cost. Which of the following is NOT a factor that affects a firm's break-even point?
A. Fixed costs
B. Variable costs
C. Selling price
D. Interest rates
Question 2
A firm specializes in producing a single product, which is a type of commodity. The commodity is characterized by its homogeneity and perfect substitutability. What is the name of this type of commodity?
A. Standardized commodity
B. Differentiated product
C. Homogeneous product
D. Perfectly competitive commodity
Question 3
A company is considering two different production processes for a new product. Process A has a higher fixed cost but a lower variable cost per unit, while Process B has a lower fixed cost but a higher variable cost per unit. Which process should the company choose if it expects to produce 10,000 units?
A. Process A
B. Process B
C. It depends on the company's expectations for future production levels.
D. The company should choose the process with the lower total cost.
Question 4
A firm's production process involves the use of a machine that can produce 100 units per hour. If the machine operates for 8 hours a day, what is the total output for the day?
A. 800 units
B. 1000 units
C. 1200 units
D. 1600 units
Question 5
A company's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). What is the primary purpose of GAAP?
A. To provide a framework for financial reporting
B. To ensure the accuracy of financial statements
C. To provide a basis for taxation
D. To facilitate auditing
Question 6
A freight forwarder is responsible for arranging the transportation of goods from one country to another. What is the primary responsibility of a freight forwarder?
A. To negotiate the price of the goods
B. To arrange for the storage of the goods
C. To arrange for the transportation of the goods
D. To handle customs clearance
Question 7
A life insurance policy has a premium of ₦50,000 per year and a benefit of ₦1,000,000. If the policyholder dies after 5 years, what is the total benefit paid to the beneficiary?
A. ₦5,000,000
B. ₦4,500,000
C. ₦4,000,000
D. ₦3,500,000
Question 8
A firm produces two products, A and B. Product A requires 2 hours of labor and 3 units of raw material, while product B requires 3 hours of labor and 2 units of raw material. If the firm has 120 hours of labor and 180 units of raw material available, how many units of product A and product B should the firm produce to maximize profit?
A. (40, 60)
B. (60, 40)
C. (50, 50)
D. (30, 70)
Question 9
A company's marketing strategy involves a mix of advertising and sales promotions. Which of the following is a characteristic of a sales promotion?
A. It is a long-term strategy
B. It is a short-term strategy
C. It is a cost-effective strategy
D. It is a strategy that targets a specific market segment
Question 10
In a perfectly competitive market, the supply curve is upward-sloping because
A. Firms are willing to supply more at a higher price
B. Firms are willing to supply less at a lower price
C. Firms are willing to supply more at a lower price
D. Firms are willing to supply less at a higher price
Question 11
A company is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased market share
B. Reduced competition
C. Access to new customers
D. Improved profit margins
Question 12
A company has two branches, one in Lagos and the other in Abuja. The Lagos branch has a profit of ₦1,500,000 and the Abuja branch has a loss of ₦800,000. What is the overall profit of the company?
A. ₦1,700,000
B. ₦1,300,000
C. ₦1,000,000
D. ₦900,000
Question 13
A warehouse manager is responsible for ensuring that goods are stored safely and efficiently. What is the primary goal of a warehouse manager?
A. To minimize storage costs
B. To maximize storage capacity
C. To ensure the safety and security of the goods
D. To reduce labor costs
Question 14
A firm's revenue function is given by the equation R = 2Q^2. If the firm produces 4 units of output, what is the total revenue?
A. ₦16
B. ₦32
C. ₦64
D. ₦128
Question 15
A firm's production cost per unit is ₦100. If the selling price per unit is ₦150, what is the profit per unit?
A. ₦25
B. ₦50
C. ₦75
D. ₦100

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