POST UTME PAN-ATLANTIC UNIVERSITY 2019 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 fixed costs. 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. Number of units sold
Question 2
A firm's marketing mix involves a combination of four elements: product, price, promotion, and place. Which of the following is NOT a characteristic of a product?
A. It is tailored to the target market
B. It is consistent with the company's overall business strategy
C. It is a physical good
D. It is a service
Question 3
A consumer purchases a product for ₡0,000 and pays a 10% sales tax. What is the total amount paid by the consumer?
A. ₡1,000
B. ₡1,100
C. ₡1,200
D. ₡1,300
Question 4
A company has a market share of 30% in the industry. If the industry grows by 10% per annum, what is the expected growth rate of the company?
A. 6%
B. 8%
C. 10%
D. 12%
Question 5
A company's sole trader, Mr. A, has a warehouse with a capacity of 10,000 units. He receives an order for 8,000 units and wants to determine the optimal storage arrangement to minimize costs. If the storage cost per unit is ₦5 and the rental cost per unit is ₦3, what is the minimum total cost for storing the ordered units?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 6
A company's marketing mix is a combination of four key elements: product, price, promotion, and place. Which of the following is NOT a characteristic of a product in the marketing mix?
A. Product life cycle
B. Product positioning
C. Product packaging
D. Product quality
Question 7
A company is considering the purchase of a new machine that will cost ₦1,500,000. The machine is expected to last for 5 years and will save the company ₦300,000 per year in labor costs. What is the net present value of the machine?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 8
A consumer protection agency has the power to investigate and prosecute businesses that engage in unfair trade practices. Which of the following is a correct example of an unfair trade practice?
A. A business that sells a product at a price lower than its cost.
B. A business that sells a product with a false or misleading label.
C. A business that refuses to honor a warranty.
D. A business that engages in price-fixing.
Question 9
A marketing firm uses the AIDA model to analyze customer behavior. If the firm has the following data: Awareness = 80%, Interest = 70%, Desire = 60%, and Action = 50%, what is the overall effectiveness of the marketing campaign?
A. 80%
B. 70%
C. 60%
D. 50%
Question 10
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to influence the money supply in the economy. Which of the following is a correct description of OMO?
A. The CBN sells government securities to commercial banks to reduce the money supply.
B. The CBN buys government securities from commercial banks to increase the money supply.
C. The CBN lends money to commercial banks at a low interest rate to increase the money supply.
D. The CBN sells government securities to commercial banks at a high interest rate to reduce the money supply.
Question 11
A company has a production capacity of 10,000 units per day. If the company operates for 20 days, what is the total production?
A. 200,000 units
B. 250,000 units
C. 300,000 units
D. 400,000 units
Question 12
A company is considering launching a new product in a market where there are already several established brands. The company's marketing manager has estimated that the demand for the product will be given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the company wants to maximize its profits, what price should it charge for the product?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
A firm has a production function Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the firm's budget constraint is given by 5L + 10K = 100, and the price of the good is 5, what is the firm's optimal level of production?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 14
A company's financial statements provide information about its financial position and performance. Which of the following financial ratios is NOT a liquidity ratio?
A. Current Ratio
B. Quick Ratio
C. Debt-to-Equity Ratio
D. Return on Equity
Question 15
A company's financial statements include a balance sheet, income statement, and cash flow statement. Which of the following is NOT a component of the balance sheet?
A. Assets
B. Liabilities
C. Equity
D. Revenue

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