POST UTME SUMMIT UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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?
A. ₦1,200
B. ₦1,400
C. ₦1,600
D. ₦1,800
Question 2
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?
A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000
Question 3
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
B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000
Question 4
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
C. ₦500,000
D. ₦50,000,000,000
Question 5
A company is considering two different risk management strategies to mitigate its risks. Strategy A involves using a hedging strategy, while Strategy B involves using a diversification strategy. If the company wants to minimize its risk exposure, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Strategy A and Strategy B
D. Neither Strategy A nor Strategy B
Question 6
A firm is considering two different production strategies to produce its new product. Strategy A involves using a make-to-stock (MTS) strategy, while Strategy B involves using a make-to-order (MTO) strategy. If the firm wants to minimize its production costs, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Strategy A and Strategy B
D. Neither Strategy A nor Strategy B
Question 7
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
B. 10 labor units
C. 15 labor units
D. 20 labor units
Question 8
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?
A. 13,333.33
B. 14,000.00
C. 13,500.00
D. 13,000.00
Question 9
A company is considering two different transportation modes to move its products from the factory to the warehouse. Mode A involves using a truck with a capacity of 10 tons, while Mode B involves using a train with a capacity of 20 tons. If the company needs to transport 50 tons of products, what is the minimum number of trips required to transport the products using Mode A?
A. 5
B. 6
C. 7
D. 8
Question 10
A company uses the following transportation costs: ₦100,000 for land transport and ₦200,000 for air transport. What is the total transportation cost?
A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦300,000
Question 11
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. diminishing returns
B. increasing costs
C. decreasing marginal revenue
D. increasing marginal cost
Question 12
A firm is producing a product with a fixed cost of ₦5000 and a variable cost of ₦10 per unit. If the firm produces 500 units, what is the total cost of production?
A. ₦6000
B. ₦6500
C. ₦7000
D. ₦7500
Question 13
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?
A. 0.5
B. 1
C. 2
D. 3
Question 14
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?
A. ₦480,000
B. ₦500,000
C. ₦520,000
D. ₦540,000
Question 15
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
D. ₦360,000

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