POST UTME REDEEMERS UNIVERSITY 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 fixed costs. Which of the following is a correct formula for calculating the break-even point?
A. BEQ = (FC x Q)/P
B. BEQ = (FC + VC) x Q/P
C. BEQ = (FC x P)/Q
D. BEQ = (FC + VC)/P x Q
Question 2
A company's marketing strategy involves a 20% discount on all products. If a product originally costs ₦10,000, what is the discounted price?
A. ₦8,000
B. ₦9,000
C. ₦10,000
D. ₦12,000
Question 3
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve
Question 4
A firm's financial leverage is the ratio of its total debt to its total equity. Which of the following is a correct formula for calculating financial leverage?
A. FL = (TD/TE)
B. FL = (TE/TD)
C. FL = (TD + TE)/TE
D. FL = (TD - TE)/TD
Question 5
A company is considering exporting its products to a foreign country. Which of the following is a key consideration in the company's decision-making process?
A. The company's profit margins
B. The company's market share in the foreign country
C. The foreign country's trade policies and regulations
D. The company's ability to meet the foreign country's quality standards
Question 6
A company's cash flow management is a critical aspect of its financial management. Which of the following is a correct example of a cash flow management strategy?
A. Maintaining a cash reserve, Investing in short-term securities, Reducing accounts receivable
B. Maintaining a cash reserve, Investing in long-term securities, Reducing accounts payable
C. Investing in short-term securities, Reducing accounts receivable, Reducing accounts payable
D. Maintaining a cash reserve, Reducing accounts receivable, Reducing accounts payable
Question 7
A company's liability for a product defect is governed by the principle of _______ in the Consumer Protection Act.
A. Strict Liability
B. Negligence
C. Breach of Contract
D. Unfair Trade Practices
Question 8
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?
A. Obtaining a Tax Identification Number (TIN)
B. Registering with the Corporate Affairs Commission (CAC)
C. Obtaining a Business Name Certificate
D. Obtaining a Trade License
Question 9
A _______ is a type of financial institution that provides banking services to individuals and businesses.
A. Commercial Bank
B. Investment Bank
C. Central Bank
D. Development Bank
Question 10
A company's marketing mix is a set of strategies that it uses to promote its products. Which of the following is a correct example of a marketing mix?
A. Product, Price, Place, Promotion
B. Product, Price, Place, People
C. Product, Price, Place, Process
D. Product, Price, Place, Physical Evidence
Question 11
A company's cash flow is the net amount of cash and cash equivalents that it generates from its operations. Which of the following is a correct example of a cash flow statement?
A. Cash Flow Statement: Operating Activities, Investing Activities, Financing Activities
B. Cash Flow Statement: Operating Activities, Investing Activities, Cash and Cash Equivalents
C. Cash Flow Statement: Operating Activities, Financing Activities, Cash and Cash Equivalents
D. Cash Flow Statement: Investing Activities, Financing Activities, Cash and Cash Equivalents
Question 12
A _______ is a type of insurance policy that provides financial protection against unforeseen events or circumstances.
A. Life Insurance
B. Health Insurance
C. Disability Insurance
D. General Insurance
Question 13
A firm imports goods worth ₦5,000,000 and exports goods worth ₦3,000,000. What is the balance of trade?
A. ₦2,000,000
B. ₦1,000,000
C. ₦500,000
D. ₦2,500,000
Question 14
The _______ of a business refers to the process of identifying and evaluating potential risks and opportunities.
A. Risk Management
B. Strategic Planning
C. Financial Analysis
D. Market Research
Question 15
A consumer purchases a product from a retailer, but the product is defective. The consumer seeks redress under the Consumer Protection Act (CPA) 1999. Which of the following is a requirement for the consumer to succeed in their claim?
A. The consumer must prove that the product was used for its intended purpose
B. The consumer must prove that the product was defective at the time of purchase
C. The consumer must prove that the retailer was negligent in the sale of the product
D. The consumer must prove that the product was not properly labeled

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