POST UTME BELLS UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different marketing strategies for its new product. Strategy A involves a high upfront cost of ₦10 million, but it is expected to generate ₦50 million in revenue over the next 6 months. Strategy B involves a lower upfront cost of ₦5 million, but it is expected to generate ₦30 million in revenue over the same period. What is the break-even point for each strategy?
A. 3 months
B. 4 months
C. 5 months
D. 6 months
Question 2
A bank's liquidity ratio is calculated as the ratio of liquid assets to total deposits. If a bank has ₦500 million in liquid assets and ₦1.5 billion in total deposits, what is the bank's liquidity ratio?
A. 0.33
B. 0.67
C. 1.00
D. 1.50
Question 3
A firm is facing a downward-sloping demand curve. What is the implication of this on the firm's pricing decision?
A. The firm will always produce at the point where the marginal revenue equals the marginal cost.
B. The firm will always produce at the point where the average revenue equals the average cost.
C. The firm will always produce at the point where the demand curve intersects the supply curve.
D. The firm will always produce at the point where the marginal revenue equals the average revenue.
Question 4
A life insurance policy has a premium of ₦100,000 per annum. The policy has a term of 20 years and a sum assured of ₦5 million. If the policyholder dies after 10 years, what is the amount payable to the beneficiary?
A. ₦2.5 million
B. ₦3 million
C. ₦3.5 million
D. ₦4 million
Question 5
A marketing manager wants to measure the effectiveness of a new advertising campaign. Which of the following metrics would be most relevant?
A. Return on investment (ROI)
B. Customer acquisition cost (CAC)
C. Conversion rate
D. Social media engagement
Question 6
A consumer is considering purchasing a product that has a price of ₦500 and a quality rating of 8 out of 10. However, the consumer is also considering purchasing a different product that has a price of ₦600 and a quality rating of 9 out of 10. Using the concept of consumer surplus, which product should the consumer choose?
A. The product with a price of ₦500
B. The product with a price of ₦600
C. Both products are equally desirable
D. Neither product is desirable
Question 7
A consumer protection agency receives a complaint about a company's misleading advertising. The agency finds that the company has made false claims about the product's features and benefits. What is the agency's likely course of action?
A. Issue a warning to the company
B. Order the company to stop the advertising campaign
C. Fine the company ₦1 million
D. Sue the company for damages
Question 8
A company's financial statements are audited annually. The auditor's report states that the company's financial statements are presented fairly in all material respects, but notes that the company's accounting policies are not in line with the Generally Accepted Accounting Principles (GAAP). What is the implication of this finding?
A. The company's financial statements are not reliable.
B. The company's accounting policies are not in line with GAAP.
C. The auditor's report is not reliable.
D. The company's financial statements are presented fairly in all material respects.
Question 9
A company is considering the expansion of its operations into a new market. The company's management team has identified several potential markets, but the team is unsure which market to choose. What is the key factor that the management team should consider when making this decision?
A. The size of the potential market.
B. The level of competition in the potential market.
C. The company's resources and capabilities.
D. The potential market's growth rate.
Question 10
A firm is considering the introduction of a new product. The product has a high fixed cost, but a low variable cost. What type of market structure is this firm likely to operate in?
A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. Oligopoly
Question 11
A firm's warehousing and stock control system involves the use of a first-in-first-out (FIFO) inventory system. Which of the following is a characteristic of a FIFO system?
A. It assumes that the oldest inventory items are sold first
B. It assumes that the newest inventory items are sold first
C. It assumes that the inventory items are sold in the order they were received
D. It assumes that the inventory items are sold in the order of their prices
Question 12
A firm's decision to adopt a new technology is influenced by the potential benefits of increased productivity and reduced costs. However, the adoption of this technology also poses a risk of job displacement for some employees. Which of the following is a key consideration for the firm in making this decision?
A. The potential impact on employee morale and job satisfaction
B. The potential impact on the firm's reputation and brand image
C. The potential impact on the firm's bottom line and profitability
D. The potential impact on the firm's ability to compete in the market
Question 13
A firm's home trade involves the sale of goods to customers in the same country. Which of the following is a characteristic of home trade?
A. It involves the sale of goods to customers in the same country
B. It involves the sale of goods to customers in a foreign country
C. It involves the sale of goods to customers in a neighboring country
D. It involves the sale of goods to customers in a country with a different language
Question 14
In a warehouse with a storage capacity of 10,000 units, the inventory level is currently at 8,000 units. The warehouse receives a shipment of 2,000 units on Monday, 1,500 units on Tuesday, and 1,200 units on Wednesday. If the warehouse operates 7 days a week and the average daily demand is 500 units, what is the probability that the warehouse will run out of stock by the end of the week?
A. 0.2
B. 0.3
C. 0.4
D. 0.5
Question 15
A firm is considering the introduction of a new product. The product has a high fixed cost, but a low variable cost. What type of market structure is this firm likely to operate in?
A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. Oligopoly

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: