POST UTME REDEEMERS UNIVERSITY 2022 Commerce | Objective

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Question 1
A firm is considering two different production processes for its product. Process A requires an initial investment of ₦1.5 million and has a production cost of ₦200,000 per unit. Process B requires an initial investment of ₦2.0 million and has a production cost of ₦150,000 per unit. If the firm produces 10,000 units, what is the total cost of production for each process?
A. Process A: ₦1.5 million, Process B: ₦1.8 million
B. Process A: ₦1.8 million, Process B: ₦1.5 million
C. Process A: ₦1.2 million, Process B: ₦1.6 million
D. Process A: ₦1.6 million, Process B: ₦1.2 million
Question 2
A company's financial statements show a net income of ₦1.2 million and a total equity of ₦3.5 million. What is the company's return on equity (ROE)?
A. 35%
B. 40%
C. 45%
D. 50%
Question 3
A foreign trade agreement between two countries involves the exchange of goods worth ₦100 million. If the exchange rate is 1 USD = ₦500, what is the value of the goods in USD?
A. ₦500 million
B. ₦200 million
C. ₦100 million
D. ₦50 million
Question 4
A business has a warehouse with a capacity to store 10,000 units of goods. The business has received an order for 8,000 units of goods. What is the maximum number of units of goods that the business can store in the warehouse?
A. 8,000
B. 10,000
C. 12,000
D. 15,000
Question 5
A consumer protection agency has received a complaint about a business that has failed to deliver goods to a customer. The agency has the power to impose a fine of ₦10,000 on the business. What is the purpose of the fine?
A. To compensate the customer for the loss suffered.
B. To deter the business from engaging in similar conduct in the future.
C. To punish the business for its failure to deliver goods.
D. To refund the customer's money.
Question 6
In a perfectly competitive market, the law of diminishing marginal utility is most relevant to the production of which of the following goods?
A. Giffen goods
B. Normal goods
C. Inferior goods
D. Veblen goods
Question 7
A company's revenue function is given by R(x) = 2x^2 + 10x, where x is the number of units sold. If the company wants to maximize its revenue, what is the optimal number of units to sell?
A. 5
B. 10
C. 15
D. 20
Question 8
A sole trader's business is considered a separate legal entity from its owner. What is the primary advantage of this separation?
A. Limited liability
B. Separate taxation
C. Increased credibility
D. Easier business closure
Question 9
A company is considering two different production processes for a new product. Process A requires an initial investment of ₦10 million and has a variable cost of ₦5 per unit. Process B requires an initial investment of ₦15 million and has a variable cost of ₦3 per unit. If the company expects to sell 10,000 units of the product, which process should it choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 10
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the labor input, and H is the capital input. If the firm wants to increase its output by 20% while keeping labor input constant, what percentage increase in capital input is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A company is considering launching a new product in a foreign market. The company's marketing manager has identified three potential marketing strategies: product positioning, price skimming, and segmentation. Which strategy is most likely to be effective in a foreign market?
A. Product positioning
B. Price skimming
C. Segmentation
D. All of the above
Question 12
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Tax benefits
C. Easy setup and maintenance
D. Flexibility in decision-making
Question 13
A company is considering a marketing strategy that involves creating a viral video campaign. The campaign is expected to reach a large audience and generate significant buzz around the company's product. However, the company is concerned about the potential risks associated with the campaign, including the possibility of negative publicity and the potential for the campaign to be hijacked by trolls. Which of the following is the most appropriate marketing strategy for the company to adopt?
A. Adopt a conservative marketing strategy that focuses on traditional advertising channels.
B. Invest in a robust social media monitoring system to track the campaign's performance and respond to any negative feedback.
C. Create a separate brand identity for the campaign to protect the company's main brand from any potential backlash.
D. Launch the campaign without any prior testing or research to maximize its potential impact.
Question 14
A company is considering exporting its product to a foreign country. What is the primary advantage of exporting?
A. Increased revenue
B. Reduced competition
C. Improved brand image
D. Access to new markets
Question 15
A business owner is considering expanding their operations to a new market. What is the primary factor to consider when evaluating the feasibility of this expansion?
A. Market size and growth potential
B. Competitor analysis and market share
C. Regulatory environment and compliance
D. Supply chain and logistics

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