POST UTME SUMMIT UNIVERSITY 2018 Commerce | Objective

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Question 1 View Details
In a foreign trade transaction, a Nigerian exporter sells goods worth ₦5,000,000 to a foreign buyer. The exporter's bank charges a commission of 2% on the transaction value. If the exchange rate is 1 USD = ₦360, what is the exporter's net earnings in USD?
Correct A. 13,333.33
B. 14,000.00
C. 13,500.00
D. 13,000.00

Correct Answer: A

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Question 2 View Details
A company's marketing strategy involves a 20% discount on all products for the first 100 customers. If a product originally costs ₦10,000, what is the total amount paid by the 101st customer?
A. ₦8,000
B. ₦9,000
Correct C. ₦10,000
D. ₦11,000

Correct Answer: C

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Question 3 View Details
A consumer protection agency receives a complaint from a customer who purchased a product worth ₦50,000 but was given a defective item. The agency offers a refund of ₦30,000. What is the percentage of the refund?
A. 60%
Correct B. 50%
C. 40%
D. 30%

Correct Answer: B

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Question 4 View Details
A company's insurance policy covers losses up to ₦1,000,000. If the company suffers a loss of ₦1,500,000, what is the amount the company must pay out of pocket?
A. ₦500,000
Correct B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000

Correct Answer: B

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Question 5 View Details
A company's marketing strategy involves a 15% increase in prices for all products. If a product originally costs ₦20,000, what is the new price?
A. ₦22,000
B. ₦23,000
Correct C. ₦24,000
D. ₦25,000

Correct Answer: C

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Question 6 View Details
Under the Consumer Protection Act, what is the primary responsibility of the Consumer Protection Council?
A. To regulate consumer prices
Correct B. To protect consumer rights
C. To promote consumer education
D. To enforce consumer laws

Correct Answer: B

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Question 7 View Details
A company issues a 5-year bond with a face value of ₦10,000,000 and a coupon rate of 8%. What is the annual coupon payment?
A. ₦800,000
Correct B. ₦640,000
C. ₦720,000
D. ₦800,000

Correct Answer: B

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Question 8 View Details
A firm's marketing mix includes the 4 Ps: Product, Price, Place, and Promotion. What is the primary objective of the Place element?
A. To create awareness
B. To build relationships
Correct C. To facilitate distribution
D. To enhance customer service

Correct Answer: C

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Question 9 View Details
A company uses the following transportation costs: ₦100,000 for land transport and ₦200,000 for air transport. What is the total transportation cost?
Correct A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦300,000

Correct Answer: A

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Question 10 View Details
A firm's foreign trade involves exporting goods to a country with a currency exchange rate of 1 USD = ₦500. If the firm sells a product for 100, what is the equivalent in Nigerian Naira?
Correct A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000

Correct Answer: A

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Question 11 View Details
In a perfectly competitive market, the law of diminishing marginal returns applies to the production of a good. However, the firm's marginal revenue product (MRP) curve is upward-sloping. Explain why this is the case.
A. The firm is a price-taker and the market demand curve is downward-sloping.
B. The firm's production function exhibits increasing returns to scale.
Correct C. The firm's marginal revenue product (MRP) curve is upward-sloping because the firm's marginal revenue (MR) curve is downward-sloping.
D. The firm is a monopolist and the market demand curve is upward-sloping.

Correct Answer: C

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Question 12 View Details
A company has a cash balance of ₦1,000,000 and a current account balance of ₦500,000. The company's cash manager wants to invest the excess cash in a short-term investment that will mature in 30 days. Which of the following investments would be suitable?
Correct A. A 30-day commercial paper with a face value of ₦1,000,000.
B. A 30-day treasury bill with a face value of ₦500,000.
C. A 30-day certificate of deposit with a face value of ₦1,000,000.
D. A 30-day money market fund with a face value of ₦500,000.

Correct Answer: A

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Question 13 View Details
A sole trader has a business income of ₦2,000,000 and a business expense of ₦1,500,000. What is the sole trader's business profit?
Correct A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 14 View Details
A company has a production function given by the equation Q = 2L + 3K, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the company wants to produce 10 units of output, how many labor units are required?
A. 5 labor units
Correct B. 10 labor units
C. 15 labor units
D. 20 labor units

Correct Answer: B

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Question 15 View Details
A company has a foreign exchange rate of 1 USD = ₦500. If the company wants to purchase 100 USD, how much will it cost in Nigerian naira?
A. ₦50,000
B. ₦50,000,000
Correct C. ₦500,000
D. ₦50,000,000,000

Correct Answer: C

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Question 16 View Details
In a sole trade business, the owner's capital is ₦250,000. If the business generates a profit of ₦120,000, what is the owner's new capital?
A. ₦370,000
B. ₦350,000
C. ₦380,000
Correct D. ₦360,000

Correct Answer: D

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Question 17 View Details
A company's marketing strategy involves a 20% discount on all products. If a product originally costs ₦1,500, what is the new price after the discount?
Correct A. ₦1,200
B. ₦1,400
C. ₦1,600
D. ₦1,800

Correct Answer: A

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Question 18 View Details
A foreign trade agreement involves exchanging 100 units of a product for 120 units of another product. If the value of the first product is ₦10 per unit, what is the value of the second product per unit?
Correct A. ₦8.33
B. ₦10
C. ₦12
D. ₦15

Correct Answer: A

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Question 19 View Details
A company's insurance policy covers a maximum of ₦500,000 in case of an accident. If the company has a deductible of ₦20,000, what is the maximum amount the company will pay out of pocket?
Correct A. ₦480,000
B. ₦500,000
C. ₦520,000
D. ₦540,000

Correct Answer: A

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Question 20 View Details
A sole trade business generates a profit of ₦150,000 in the first year and ₦200,000 in the second year. What is the average annual profit?
A. ₦175,000
B. ₦180,000
Correct C. ₦185,000
D. ₦190,000

Correct Answer: C

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Question 21 View Details
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
Correct A. diminishing returns
B. increasing costs
C. decreasing marginal revenue
D. increasing marginal cost

Correct Answer: A

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Question 22 View Details
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 1/2
B. 1
Correct C. 2
D. 3

Correct Answer: C

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Question 23 View Details
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the elasticity of demand?
Correct A. 0.5
B. 1
C. 2
D. 3

Correct Answer: A

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Question 24 View Details
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current inputs are L = 4 and K = 9, what is the marginal product of capital?
A. 1/2
Correct B. 1
C. 2
D. 3

Correct Answer: B

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Question 25 View Details
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the revenue?
A. 1000
Correct B. 1200
C. 1400
D. 1600

Correct Answer: B

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