POST UTME SUMMIT UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm specializes in producing only one product. This is an example of:
A. Product Diversification
B. Product Differentiation
C. Economies of Scale
D. Monopolistic Competition
Question 2
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital invested. If the firm wants to produce 10 units of output, how many labor hours are required if the amount of capital invested is 2?
A. 4
B. 6
C. 8
D. 10
Question 3
A company is considering the implementation of a just-in-time (JIT) inventory system. Which of the following benefits is NOT a characteristic of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased lead times
D. Reduced flexibility in production planning
Question 4
A company is considering two different production processes for its product. Process A has a fixed cost of ₦500,000 and a variable cost of ₦10 per unit. Process B has a fixed cost of ₦750,000 and a variable cost of ₦8 per unit. If the selling price of the product is ₦20 per unit, which process should the company use?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 5
A warehouse is a type of storage facility used to store goods and merchandise. Which of the following is a benefit of using a warehouse?
A. To reduce the risk of damage to goods.
B. To increase the speed of delivery.
C. To reduce the cost of storage.
D. To increase the security of goods.
Question 6
A company is considering two different marketing strategies: a high-low strategy and a penetration pricing strategy. Which of the following statements best describes the high-low strategy?
A. A high-low strategy involves setting a high price for a product in order to attract a small number of customers who are willing to pay a premium.
B. A high-low strategy involves setting a low price for a product in order to attract a large number of customers who are price-sensitive.
C. A high-low strategy involves setting a high price for a product in order to attract a large number of customers who are willing to pay a premium.
D. A high-low strategy involves setting a low price for a product in order to attract a small number of customers who are price-sensitive.
Question 7
A company has a company business structure. The company has a board of directors and a managing director. What is the primary advantage of having a board of directors?
A. It allows for easier decision-making
B. It provides a higher level of accountability
C. It helps to separate ownership and management
D. It allows for easier access to business funds
Question 8
A consumer purchases a product with a 2-year warranty. The warranty covers repairs and replacements for defects in materials and workmanship. What type of insurance is this?
A. Product liability insurance
B. Extended warranty insurance
C. Product recall insurance
D. Product damage insurance
Question 9
A consumer is considering the purchase of a new product. The product has a price of ₦10,000 and a warranty period of 2 years. The consumer expects to save ₦2,000 per year by purchasing the product. What is the consumer's expected net benefit from purchasing the product?
A. ₦8,000
B. ₦10,000
C. ₦12,000
D. ₦14,000
Question 10
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity in this market?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units
Question 11
A consumer protection agency has received a complaint about a company that is selling a product with a misleading label. The label claims that the product is '100% natural' when in fact it contains 20% artificial ingredients. What is the legal basis for the agency's action against the company?
A. The Consumer Protection Act
B. The Trade Practices Act
C. The Advertising Standards Authority
D. The Product Labeling Act
Question 12
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's current stock level is 8,000 units, what is the maximum number of units that can be added to the warehouse without exceeding its capacity?
A. 2,000
B. 8,000
C. 10,000
D. 12,000
Question 13
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's current stock level is 8,000 units, what is the maximum number of units that can be added to the warehouse without exceeding its capacity?
A. 2,000
B. 8,000
C. 10,000
D. 12,000
Question 14
A company is considering the implementation of a new marketing strategy. The strategy involves increasing the price of their product by 10% and reducing the quantity sold by 20%. What is the effect on the company's total revenue?
A. Increase by 8%
B. Decrease by 12%
C. Increase by 4%
D. Decrease by 16%
Question 15
A consumer purchases a product with a 5-year warranty. The warranty covers repairs and replacements for defects in materials and workmanship. What type of insurance is this?
A. Product liability insurance
B. Extended warranty insurance
C. Product recall insurance
D. Product damage insurance

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