POST UTME AFE BABALOLA UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank is considering offering a new credit card product to its customers. Which of the following is a key consideration when evaluating the credit card's risk?
A. Creditworthiness of the borrower
B. Interest rate of the credit card
C. Credit limit
D. All of the above
Question 2
In a competitive market, a firm's demand curve is downward sloping. What is the likely effect of an increase in the firm's production costs on its supply curve?
A. The supply curve shifts to the left.
B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The demand curve shifts to the left.
Question 3
A firm uses a transportation management system to optimize its logistics operations. This system is an example of which of the following transportation management techniques?
A. Route optimization
B. Load planning
C. Freight audit and payment
D. Transportation mode selection
Question 4
A company is considering two different production processes for its products: Process A, which has a production function of Q_A = 2L_A^0.5K_A^0.5, and Process B, which has a production function of Q_B = 3L_B^0.6K_B^0.4. If the company wants to increase its production by 25% while keeping labor constant, which process is more cost-effective?
A. Process A
B. Process B
C. Both processes are equally cost-effective
D. Neither process is cost-effective
Question 5
A sole trader has an annual turnover of ₦5 million and a net profit of ₦1.2 million. What is the sole trader's profit margin?
A. 24%
B. 25%
C. 26%
D. 27%
Question 6
A company's marketing strategy involves creating a brand identity that is consistent across all channels. Which of the following is a key element of a brand identity?
A. Unique Selling Proposition (USP)
B. Target Market
C. Brand Positioning
D. Product Features
Question 7
A firm specializes in producing only one good. This specialization is an example of which of the following production concepts?
A. Economies of scale
B. Division of labor
C. Comparative advantage
D. Opportunity cost
Question 8
A company's production function is given by the Cobb-Douglas production function: Q = 10L^0.4K^0.6, where Q is the quantity produced, L is labor, and K is capital. If the company wants to increase its production by 20% while keeping labor constant, what percentage increase in capital is required?
A. 15%
B. 20%
C. 25%
D. 30%
Question 9
A company's financial statements show that its current ratio is 2.5 and its acid-test ratio is 1.8. What can be inferred about the company's liquidity position?
A. The company has a high level of liquidity and can easily meet its short-term obligations.
B. The company has a moderate level of liquidity and may face some difficulties in meeting its short-term obligations.
C. The company has a low level of liquidity and is likely to face significant difficulties in meeting its short-term obligations.
D. The company's liquidity position cannot be determined from the given information.
Question 10
A company is considering exporting its products to a new country. Which of the following is a key consideration when evaluating the export market?
A. Market demand
B. Trade agreements
C. Transportation costs
D. All of the above
Question 11
A bank is considering offering a new loan product to its customers. Which of the following is a key consideration when evaluating the loan's risk?
A. Creditworthiness of the borrower
B. Interest rate of the loan
C. Loan term
D. All of the above
Question 12
A firm is considering two different export markets for its products: Market A, which has a demand function of Q_A = 100 - 2P_A, and Market B, which has a demand function of Q_B = 150 - 3P_B. If the firm wants to maximize its revenue, which market should it target?
A. Market A
B. Market B
C. Both markets are equally attractive
D. Neither market is attractive
Question 13
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. If the consumer spends all their budget on good A, how much of good B can they afford?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 14
A company imports goods worth ₦10 million from a foreign country. The company pays a customs duty of 10% on the imported goods. What is the total amount paid by the company?
A. ₦11 million
B. ₦11.5 million
C. ₦12 million
D. ₦12.5 million
Question 15
A consumer protection agency has received a complaint about a company's unfair business practices. Which of the following is a key principle of consumer protection?
A. Transparency
B. Fairness
C. Accountability
D. All of the above

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