POST UTME BABCOCK UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A risk management strategy is a plan to identify, assess, and mitigate potential risks to a business. What is the main purpose of a risk management strategy?
A. To identify and assess potential risks
B. To mitigate and manage potential risks
C. To avoid and eliminate potential risks
D. To ignore and neglect potential risks
Question 2
A company's supply curve for a good is given by Qs = 2P + 10. If the price of the good is ₦10, what is the company's quantity supplied?
A. 20 units.
B. 30 units.
C. 40 units.
D. 50 units.
Question 3
A company has a policy of paying its employees a fixed salary of ₦50,000 per month, plus a bonus of 10% of their monthly salary. If an employee's monthly salary is ₦40,000, what is their total monthly income?
A. ₦50,000
B. ₦44,000
C. ₦48,000
D. ₦52,000
Question 4
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?
A. A country producing both wheat and cloth, but producing more wheat than cloth.
B. A country producing both wheat and cloth, but producing more cloth than wheat.
C. A country producing only wheat, while another country produces only cloth.
D. A country producing both wheat and cloth, but producing them at the same opportunity cost.
Question 5
A company is a type of business ownership where a group of people come together to form a business. What is the main disadvantage of a company?
A. High level of control and decision-making
B. Limited liability and tax benefits
C. Ability to raise capital from investors
D. Complexity and bureaucracy
Question 6
The concept of 'Gross National Product' (GNP) is closely related to the concept of 'National Income' (NI). Discuss the relationship between GNP and NI, and explain how they are calculated.
A. GNP is the total value of all goods and services produced within a country's borders, while NI is the total income earned by a country's citizens, regardless of where they reside.
B. GNP is the total income earned by a country's citizens, while NI is the total value of all goods and services produced within a country's borders.
C. GNP is the total value of all goods and services produced within a country's borders, while NI is the total income earned by a country's citizens, including those living abroad.
D. GNP is the total income earned by a country's citizens, while NI is the total value of all goods and services produced within a country's borders, minus the value of imports.
Question 7
A consumer's indifference curve is downward-sloping because
A. The consumer is willing to trade off one good for another.
B. The consumer is unwilling to trade off one good for another.
C. The consumer is indifferent between the two goods.
D. The consumer is willing to trade off one good for another at a constant rate.
Question 8
A firm is considering two different pricing strategies for a product. Strategy A involves charging a price of ₦100 per unit, while strategy B involves charging a price of ₦120 per unit. If the firm expects to sell 100 units of the product, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable
Question 9
A firm is considering two different pricing strategies for a product. Strategy A involves charging a price of ₦100 per unit, while strategy B involves charging a price of ₦120 per unit. If the firm expects to sell 100 units of the product, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable
Question 10
A company is considering a marketing strategy that involves offering a 10% discount to customers who purchase a product within a certain time frame. If the original price of the product is ₦1,000, what is the minimum price the company must charge to ensure a profit of ₦200?
A. ₦800
B. ₦900
C. ₦1,000
D. ₦1,100
Question 11
A bank has a loan of ₦500,000 at an interest rate of 12% per annum compounded annually. If the interest is compounded for 2 years, what is the total amount the borrower must repay?
A. ₦562,000
B. ₦600,000
C. ₦625,000
D. ₦650,000
Question 12
A firm is considering two different production processes to produce a good. Process A requires 10 units of labor and 5 units of capital to produce 100 units of the good, while process B requires 15 units of labor and 3 units of capital to produce 120 units of the good. Which process should the firm choose?
A. Process A
B. Process B
C. Both processes are equally efficient
D. Neither process is efficient
Question 13
A consumer's demand curve for a good is given by Qd = 100 - 2P. If the price of the good is ₦20, what is the consumer's quantity demanded?
A. 10 units.
B. 20 units.
C. 30 units.
D. 40 units.
Question 14
A company is considering two different marketing strategies: a high-low pricing strategy and a penetration pricing strategy. Discuss the advantages and disadvantages of each strategy, and explain how they can be used to achieve the company's marketing objectives.
A. High-low pricing strategy: This strategy involves charging high prices for a product during its introduction and then reducing the price over time. Advantages: creates a sense of urgency, increases perceived value. Disadvantages: may deter price-sensitive customers.
B. Penetration pricing strategy: This strategy involves charging low prices for a product to attract a large market share. Advantages: increases market share, attracts price-sensitive customers. Disadvantages: may lead to price wars, reduces profit margins.
C. High-low pricing strategy: This strategy involves charging low prices for a product during its introduction and then increasing the price over time. Advantages: increases market share, attracts price-sensitive customers. Disadvantages: may lead to price wars, reduces profit margins.
D. Penetration pricing strategy: This strategy involves charging high prices for a product to create a sense of exclusivity. Advantages: creates a sense of exclusivity, increases perceived value. Disadvantages: may deter price-sensitive customers.
Question 15
A company's insurance policy covers losses up to ₦100,000. If the company suffers a loss of ₦120,000, what is the company's maximum payout?
A. ₦100,000.
B. ₦120,000.
C. ₦80,000.
D. ₦60,000.

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