POST UTME AFE BABALOLA UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A multinational corporation is considering entering the Nigerian market. Which of the following types of trade would be most suitable for this company?
A. Export Trade
B. Import Trade
C. Intra-Company Trade
D. Counter Trade
Question 2
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. The consumer's indifference curves are given by the equation U = 2x^0.5y^0.5, where U is utility, x is the quantity of good A and y is the quantity of good B. If the consumer is initially at point (2, 2), what is the new point on the indifference curve that the consumer will move to after a price increase of 20%?
A. (1, 3)
B. (2, 2)
C. (3, 1)
D. (4, 0)
Question 3
A company's risk management strategy involves diversification of its investments across various asset classes. If the company invests ₦1,000,000 in stocks, ₦500,000 in bonds, and ₦300,000 in real estate, what is the expected return on investment (ROI) if the annual returns on stocks, bonds, and real estate are 12%, 6%, and 8% respectively?
A. 15%
B. 12%
C. 18%
D. 20%
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm wants to increase its output by 20% and labor increases by 10%, what is the percentage increase in capital required?
A. 5%
B. 10%
C. 15%
D. 20%
Question 5
In the context of international trade, what is the primary function of the World Trade Organization (WTO)?
A. To regulate international trade agreements
B. To provide a platform for countries to negotiate trade agreements
C. To enforce trade sanctions against non-compliant countries
D. To promote economic development in developing countries
Question 6
A _______ is a type of insurance that pays a lump sum benefit if the policyholder dies within a specified period.
A. life insurance
B. health insurance
C. disability insurance
D. accident insurance
Question 7
The _______ of a business refers to the process of creating and communicating value to customers.
A. production
B. distribution
C. consumption
D. marketing
Question 8
A consumer protection agency has received a complaint from a customer who claims that a company has sold a defective product. The agency has gathered evidence that the company has a history of selling defective products. What is the most likely legal remedy for the customer?
A. The customer can sue the company for damages
B. The customer can file a complaint with the consumer protection agency
C. The customer can return the defective product for a full refund
D. The customer can cancel the purchase and receive a partial refund
Question 9
A company is considering investing in a new project with a expected return of 12% and a standard deviation of 8%. What is the expected value of the project?
A. 10%
B. 12%
C. 15%
D. 18%
Question 10
In a sole trade business, what is the primary advantage of using a cash register system?
A. Improved accuracy in recording transactions
B. Enhanced customer satisfaction through faster service
C. Reduced risk of theft and loss of cash
D. Increased storage capacity for inventory
Question 11
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. The consumer's indifference curves are given by the equation U = 2x^0.5y^0.5, where U is utility, x is the quantity of good A and y is the quantity of good B. If the consumer is initially at point (2, 2), what is the new point on the indifference curve that the consumer will move to after a price increase of 20%?
A. (1, 3)
B. (2, 2)
C. (3, 1)
D. (4, 0)
Question 12
A company has a production capacity of 10,000 units per month. If the demand for the product is 12,000 units per month, what is the level of production specialization?
A. 50%
B. 60%
C. 70%
D. 80%
Question 13
A company's marketing strategy involves creating a new product line. The company has a budget of ₦1,500,000 for the product launch. If the cost of production is ₦800,000, and the company wants to make a profit of 20%, how much should it spend on advertising?
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 14
A consumer purchases a product with a warranty period of 2 years. If the consumer returns the product after 1 year and 6 months, is the consumer eligible for a replacement under the warranty?
A. Yes
B. No
C. Maybe
D. Depends on the manufacturer's policy
Question 15
A consumer protection law that prohibits unfair or deceptive acts or practices in the marketplace is known as a _______ law.
A. deceptive
B. unfair
C. fraudulent
D. deceptive or unfair

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