POST UTME WELLSPRING UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering exporting its products to a foreign market. Which of the following is a potential benefit of exporting?
A. Increased market share
B. Improved product quality
C. Reduced production costs
D. Enhanced brand reputation
Question 2
A firm exports goods to a foreign country. What is the primary risk associated with this business activity?
A. Exchange rate fluctuations
B. Tariffs and trade barriers
C. Cultural and language differences
D. Transportation and logistics costs
Question 3
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units and has already stored 4,000 units in the warehouse. What is the minimum number of units the company needs to order to fulfill the order?
A. 2,000
B. 4,000
C. 6,000
D. 8,000
Question 4
A company is considering implementing a just-in-time (JIT) inventory system. Which of the following is a potential advantage of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Enhanced customer service
D. Increased production efficiency
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦50 per unit, while the price of capital is ₦100 per unit, what is the minimum cost of production?
A. ₦800
B. ₦1000
C. ₦1200
D. ₦1500
Question 6
A company has a sole proprietorship business. What is the primary advantage of this business structure?
A. Easy to set up and maintain
B. Limited liability for owners
C. Pass-through taxation
D. Ability to issue stocks and bonds
Question 7
A company is considering two marketing strategies: one that involves a 10% increase in price and another that involves a 20% increase in advertising. Which strategy should the company choose if it expects to increase sales by 10%?
A. The company should choose the strategy with the higher price increase
B. The company should choose the strategy with the higher advertising increase
C. The company should choose the strategy with the lower price increase
D. The company should choose the strategy with the lower advertising increase
Question 8
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will __________.
A. increase
B. decrease
C. remain constant
D. fluctuate
Question 9
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). Which of the following is a consequence of this?
A. The sole trader cannot sue or be sued
B. The sole trader's business is not recognized by the government
C. The sole trader cannot obtain a loan from a bank
D. The sole trader's business is not taxed
Question 10
A company has a cash reserve of ₦1,500,000 and wants to invest in a project with a required return of 12% per annum. If the project has a beta of 1.2 and the risk-free rate is 6% per annum, calculate the cost of equity using the Capital Asset Pricing Model (CAPM).
A. ( r_e = 6% + 1.2 imes (12% - 6%) )
B. ( r_e = 6% + 1.2 imes (12% + 6%) )
C. ( r_e = 6% + 1.2 imes (12% imes 6%) )
D. ( r_e = 6% + 1.2 imes (12% div 6%) )
Question 11
In a perfectly competitive market, what is the relationship between the marginal revenue product of labor and the market wage?
A. The marginal revenue product of labor is equal to the market wage.
B. The marginal revenue product of labor is greater than the market wage.
C. The marginal revenue product of labor is less than the market wage.
D. The marginal revenue product of labor is unrelated to the market wage.
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, how many units of capital (K) are required?
A. 4
B. 8
C. 16
D. 32
Question 13
A firm's balance sheet as at December 31, 2022, is as follows: Assets ₦5,000,000; Liabilities ₦3,000,000; Equity ₦2,000,000. The current ratio is
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 14
A company's financial statements show a net loss of ₦1,000,000. Which of the following is a consequence of this?
A. The company's shareholders will receive a dividend
B. The company's creditors will be paid in full
C. The company's assets will be sold to pay off debts
D. The company's management will be fired
Question 15
A company's marketing strategy involves creating a sense of urgency among its customers. This approach is an example of which of the following?
A. Scarcity
B. Perceived Value
C. Limited Time Offer
D. Brand Loyalty

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