POST UTME AL-HIKMAH UNIVERSITY 2019 Commerce | Objective

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Question 1
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation:
Correct A. Open Market Operations (OMO), Reserve Requirements, and Moral Suasion
B. Monetary Policy Committee (MPC), Fiscal Policy, and Exchange Rate
C. Commercial Banks, Non-Bank Financial Institutions, and Capital Market
D. Budgetary Allocation, Public Expenditure, and Taxation

Correct Answer: A

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Question 2
A firm's marketing mix can be described as the combination of the following elements:
Correct A. Product, Price, Place, and Promotion
B. Product, Price, Place, and People
C. Product, Price, Place, and Process
D. Product, Price, Place, and Physical Environment

Correct Answer: A

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Question 3
The following diagram illustrates the concept of supply and demand in a perfectly competitive market:
Correct A. The equilibrium price and quantity are determined by the intersection of the supply and demand curves
B. The supply curve is downward sloping, while the demand curve is upward sloping
C. The market is characterized by a surplus, where the quantity supplied exceeds the quantity demanded
D. The market is characterized by a shortage, where the quantity demanded exceeds the quantity supplied

Correct Answer: A

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Question 4
The following diagram illustrates the concept of a trade barrier:
A. A tax imposed on imported goods
Correct B. A quota limiting the quantity of imported goods
C. A tariff imposed on exported goods
D. A subsidy provided to domestic producers

Correct Answer: B

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Question 5
The following diagram illustrates the concept of a marketing channel:
A. A channel that links the producer directly to the consumer
Correct B. A channel that links the producer to the wholesaler, and then to the retailer
C. A channel that links the producer to the retailer, and then to the consumer
D. A channel that links the producer to the wholesaler, and then to the consumer

Correct Answer: B

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Question 6
A company's marketing strategy involves creating a new product line to target a specific demographic. The product line is designed to appeal to the younger generation, aged 18-35. Which of the following marketing strategies is most likely to be used by this company?
A. Segmentation
Correct B. Targeting
C. Positioning
D. Differentiation

Correct Answer: B

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Question 7
A bank offers a savings account with a 5% annual interest rate. If a customer deposits ₦10,000 into the account, how much will the customer have after 2 years, assuming the interest is compounded annually?
A. ₦11,025
Correct B. ₦11,050
C. ₦11,075
D. ₦11,100

Correct Answer: B

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Question 8
A sole trader operates a small business selling handmade crafts. The business has a profit of ₦50,000 for the year. If the business owner's drawings are ₦20,000, what is the business's net profit?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 9
A company's consumer protection policy includes a 30-day money-back guarantee. If a customer purchases a product on January 15th and returns it on February 10th, is the customer eligible for a refund?
A. Yes
Correct B. No
C. Maybe
D. Depends on the product

Correct Answer: B

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Question 10
A transport company offers a delivery service with a maximum weight limit of 500 kg. If a customer orders a shipment weighing 600 kg, what is the additional cost per kilogram?
A. ₦5 per kg
B. ₦10 per kg
C. ₦15 per kg
Correct D. ₦20 per kg

Correct Answer: D

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Question 11
A bank's decision to increase its interest rates on savings accounts can be seen as a form of price discrimination. What type of price discrimination is this?
A. Price leadership
Correct B. Price discrimination
C. Price elasticity
D. Price floor

Correct Answer: B

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Question 12
A company's marketing strategy involves creating a sense of urgency among customers to purchase its products. This is an example of which marketing technique?
A. Scarcity
Correct B. Limited-time offer
C. Loss leader
D. Upselling

Correct Answer: B

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Question 13
A consumer protection agency has been established to regulate the activities of businesses in a particular industry. What is the primary goal of this agency?
A. To promote competition among businesses
Correct B. To protect consumers from unfair business practices
C. To regulate the prices of goods and services
D. To promote economic growth

Correct Answer: B

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Question 14
A company's warehouse is designed to store goods in a way that minimizes the risk of damage and loss. What is the name of this storage system?
Correct A. First-in, first-out (FIFO)
B. Last-in, first-out (LIFO)
C. Least-cost method
D. Economic order quantity (EOQ)

Correct Answer: A

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Question 15
A bank's decision to increase its interest rates on loans can be seen as a form of price discrimination. What type of price discrimination is this?
A. Price leadership
Correct B. Price discrimination
C. Price elasticity
D. Price floor

Correct Answer: B

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Question 16
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will also increase. However, this increase in quantity supplied is not necessarily due to an increase in the production of the commodity, but rather due to an increase in the number of producers willing to supply the commodity at the higher price. What is the term for this increase in the number of producers willing to supply the commodity at the higher price?
Correct A. Entry of new firms
B. Exit of existing firms
C. Increase in production
D. Decrease in production

Correct Answer: A

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Question 17
A firm is considering two different production processes for producing a certain commodity. Process A requires an initial investment of ₦100,000 and has a variable cost of ₦50 per unit produced. Process B requires an initial investment of ₦150,000 and has a variable cost of ₦30 per unit produced. If the firm produces 10,000 units of the commodity, what is the total cost of production for each process?
Correct A. Process A: ₦1,500,000, Process B: ₦1,200,000
B. Process A: ₦1,200,000, Process B: ₦1,500,000
C. Process A: ₦1,000,000, Process B: ₦1,000,000
D. Process A: ₦1,500,000, Process B: ₦1,500,000

Correct Answer: A

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Question 18
A consumer is considering purchasing a certain commodity that costs ₦100 per unit. The consumer has a budget of ₦500 and has already spent ₦200 on other commodities. What is the maximum number of units of the commodity that the consumer can purchase?
Correct A. 2 units
B. 3 units
C. 4 units
D. 5 units

Correct Answer: A

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Question 19
A firm is considering two different marketing strategies for promoting a certain commodity. Strategy A involves a one-time payment of ₦50,000 to a marketing firm, while Strategy B involves a monthly payment of ₦10,000 to the same marketing firm. If the firm chooses Strategy A, how much will it save compared to Strategy B over a period of 6 months?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 20
A consumer is considering purchasing a certain commodity that costs ₦200 per unit. The consumer has a budget of ₦1,000 and has already spent ₦300 on other commodities. What is the maximum number of units of the commodity that the consumer can purchase?
A. 2 units
Correct B. 3 units
C. 4 units
D. 5 units

Correct Answer: B

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Question 21
In a sole proprietorship, the owner's personal assets are not protected from business liabilities. What is the term for this lack of separation?
A. Limited Liability
B. Separate Entity
Correct C. Unlimited Liability
D. Business Entity

Correct Answer: C

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Question 22
A company's Articles of Association outline the rules for managing the business. What is the primary purpose of these articles?
A. To outline the company's mission and vision
B. To define the company's structure and ownership
Correct C. To establish the company's management and decision-making processes
D. To outline the company's financial policies

Correct Answer: C

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Question 23
A marketing strategy that focuses on creating a unique selling proposition (USP) to differentiate a product from competitors is known as?
A. Segmentation
B. Targeting
C. Positioning
Correct D. Differentiation

Correct Answer: D

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Question 24
A risk management strategy that involves transferring risk to a third party is known as?
A. Risk Avoidance
B. Risk Mitigation
Correct C. Risk Transfer
D. Risk Retention

Correct Answer: C

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Question 25
A production process that involves creating a product from raw materials is known as?
Correct A. Manufacturing
B. Crafting
C. Assembly
D. Packaging

Correct Answer: A

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