POST UTME VERITAS UNIVERSITY 2018 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is considering two different marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 5% increase in sales force. If the firm's current sales are 100,000 and the marginal revenue is 20, what is the expected change in sales revenue under each strategy?
Question 2
A bank has a reserve requirement of 10% for its customers. If a customer has a deposit of ₦100,000, how much must the bank reserve?
Question 3
A firm has a warehouse with a capacity of 1000 units. The firm receives an order for 800 units and wants to fill it immediately. However, the supplier is delayed, and the firm receives only 600 units. What is the optimal inventory level?
Question 4
A consumer has a budget of ₦1000 and faces the following prices for two goods: good A costs ₦200 per unit and good B costs ₦300 per unit. If the consumer buys 2 units of good A, how many units of good B can the consumer buy?
Question 5
A firm's total revenue is ₦2,000,000, and its total cost is ₦1,500,000. If the firm's profit is ₦500,000, what is the firm's gross profit?
Question 6
In a sole trade business, the owner's personal assets are not protected from business liabilities. What is the primary reason for this?
Question 7
A company is considering two different marketing strategies for a new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the company expects to sell 10,000 units of the product per month, which strategy should it choose?
Question 8
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives a new shipment of 5,000 units, what is the new percentage of the warehouse that is full?
Question 9
A company is considering a new investment opportunity that has a 10% chance of returning a profit of 100,000 and a 90% chance of returning a profit of 50,000. If the company's cost of capital is 8%, what is the expected return on investment?
Question 10
A company's sole trader has an initial capital of ₦250,000. If the company's profit is ₦150,000 and the sole trader's drawings are ₦30,000, what is the sole trader's capital at the end of the year?
Question 11
A firm is considering two different production technologies: Technology A, which has a fixed cost of 100,000 and a variable cost of 20 per unit, and Technology B, which has a fixed cost of 50,000 and a variable cost of 30 per unit. If the firm's current sales are 10,000 units, what is the expected change in total cost under each technology?
Question 12
A company is considering two different distribution channels for a new product. Channel A involves selling the product directly to consumers, while Channel B involves selling the product to retailers who will then sell it to consumers. If the company expects to sell 10,000 units of the product per month, which channel should it choose?
Question 13
A company's marketing strategy involves the use of social media platforms to reach its target audience. What type of communication is being used?
Question 14
A consumer protection agency is considering a new regulation that would require all companies to provide a 30-day cooling-off period for customers to cancel their purchases. If the agency estimates that this regulation would increase the cost of production by 5% and reduce sales by 2%, what is the expected effect on the company's profit?
Question 15
A firm specializes in producing a single product, which is sold in a competitive market. The firm's production function is given by Q = 100L^0.5, where Q is the quantity produced and L is the labor input. If the wage rate is ₦100 per hour, what is the firm's optimal labor input?
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