POST UTME ABU 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's break-even point is the point at which its
A. total revenue equals its total fixed costs
B. total revenue equals its total variable costs
C. total revenue equals its total fixed and variable costs
D. total revenue equals its total contribution margin
Question 2
A company is considering two marketing strategies to promote its new product. Strategy A involves a high upfront cost of ₦5 million, but it is expected to generate ₦20 million in revenue over the next 6 months. Strategy B involves a lower upfront cost of ₦1 million, but it is expected to generate ₦10 million in revenue over the next 6 months. Which strategy has a higher expected return on investment (ROI)?
A. Strategy A
B. Strategy B
C. Both strategies have the same ROI
D. Neither strategy has a higher ROI
Question 3
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is the primary goal of this strategy?
A. To increase brand awareness
B. To generate leads
C. To drive sales
D. To build customer loyalty
Question 4
A firm's economic profit is the difference between its
A. total revenue and its total fixed costs
B. total revenue and its total variable costs
C. total revenue and its total fixed and variable costs
D. total revenue and its total contribution margin
Question 5
A company's financial leverage is the proportion of its assets financed by debt. Which of the following is NOT a factor that affects a company's financial leverage?
A. Debt-to-equity ratio
B. Interest rates
C. Credit rating
D. Number of employees
Question 6
A commercial bank's primary function is to act as a financial intermediary between savers and borrowers. However, this function is often compromised by the bank's desire to maximize profits. Which of the following best describes the bank's dilemma?
A. The bank must balance its desire for profit with its social responsibility to provide financial services to the community.
B. The bank's primary function is to act as a financial intermediary, and it should not prioritize profit maximization.
C. The bank's desire for profit is a necessary evil, as it allows the bank to provide financial services to the community.
D. The bank's primary function is to maximize profits, and it should not be concerned with social responsibility.
Question 7
A company's marketing strategy involves creating a brand identity that appeals to a specific demographic. However, the company's target market is also a vulnerable group, such as children. What ethical considerations should the company take into account when developing its marketing strategy?
A. The company should prioritize its profits over any potential harm to the target market.
B. The company should take steps to ensure that its marketing strategy does not exploit or manipulate the target market.
C. The company should not be concerned with the potential harm to the target market, as long as it is legal.
D. The company should prioritize its social responsibility to the target market over its profits.
Question 8
A consumer has a budget of ₦1000 and faces the following price schedule: Good A: ₦200, Good B: ₦300. If the consumer's indifference curves are given by ( U = 2x + 3y ), where x is the quantity of Good A and y is the quantity of Good B, what is the consumer's optimal bundle?
A. (10, 0)
B. (5, 5)
C. (0, 10)
D. (0, 0)
Question 9
In a perfectly competitive market, the supply curve is a
A. horizontal line
B. vertical line
C. downward sloping curve
D. upward sloping curve
Question 10
A company's marketing mix is a combination of
A. product, price, promotion, and place
B. product, price, promotion, and people
C. product, price, promotion, and process
D. product, price, promotion, and physical evidence
Question 11
A company is considering two different trade agreements to export its products to foreign markets. Agreement A involves a tariff of 10% on all exports, while Agreement B involves a tariff of 5% on all exports. However, Agreement B also requires the company to meet certain quality standards. Which agreement is more likely to increase export revenue?
A. Agreement A
B. Agreement B
C. Both agreements will have similar export revenue
D. Neither agreement will increase export revenue
Question 12
In a market with perfect competition, the demand curve for a firm's product is given by the equation ( Q = 100 - 2P ). If the firm's marginal revenue (MR) is given by ( MR = 50 - P ), what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
A company's financial leverage is the ratio of its
A. total debt to its total equity
B. total assets to its total liabilities
C. total revenue to its total expenses
D. total assets to its total equity
Question 14
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary benefit of this strategy?
A. To increase market share
B. To reduce competition
C. To improve brand image
D. To increase customer loyalty
Question 15
A firm is considering two production methods to produce a product. Method A requires an initial investment of ₦100,000 and has a variable cost of ₦50 per unit. Method B requires an initial investment of ₦150,000 and has a variable cost of ₦30 per unit. If the firm produces 10,000 units, what is the total cost of production for Method A?
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000

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