POST UTME BOWEN UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two different advertising strategies for its new product. Strategy A involves a one-time payment of ₦500,000 to a popular celebrity to endorse the product, while Strategy B involves a series of 12 monthly payments of ₦50,000 to a popular social media influencer. If the firm expects to sell 10,000 units of the product per year, and each unit sells for ₦500, what is the total cost of Strategy A?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 2
A bank offers a 5% interest rate on a savings account. If a customer deposits ₦10,000 into the account, how much interest will the customer earn in one year?
A. ₦500
B. ₦1,000
C. ₦2,000
D. ₦5,000
Question 3
A company is considering entering into a joint venture with a foreign partner. What are the key benefits and risks of this decision?
A. Benefits: access to new markets, technologies, and skills. Risks: loss of control, cultural differences, and potential conflicts.
B. Benefits: increased revenue, improved reputation, and access to new customers. Risks: increased competition, reduced flexibility, and potential legal issues.
C. Benefits: increased efficiency, improved quality, and access to new technologies. Risks: increased costs, reduced autonomy, and potential environmental impacts.
D. Benefits: increased customer satisfaction, improved brand image, and access to new customers. Risks: increased costs, reduced flexibility, and potential legal issues.
Question 4
A company's sole trader has a business that is involved in the sale of goods. The company's sole trader has a policy of paying 5% of the selling price to the supplier for each item sold. If the company's sole trader sells 100 items in a day and the selling price for each item is ₦1,000, what is the total amount paid to the supplier in a day?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 5
A company is considering two different production methods for its new product. Method A requires an initial investment of ₦1,500,000 and produces 10,000 units per year, while Method B requires an initial investment of ₦2,000,000 and produces 15,000 units per year. If the company expects to sell each unit for ₦500, what is the minimum number of years it must operate to break even using Method A?
A. 5
B. 6
C. 7
D. 8
Question 6
A consumer has a budget of ₦5,000 to spend on two products, A and B. The price of product A is ₦2,000, and the price of product B is ₦2,500. If the consumer spends all the budget on the two products, what is the maximum amount that can be spent on product B?
A. ₦2,000
B. ₦2,500
C. ₦3,000
D. ₦3,500
Question 7
A company is considering two different transportation modes to move its products from the factory to the warehouse. The cost of using a truck is ₦10,000 per trip, while the cost of using a train is ₦5,000 per trip. If the company needs to make 10 trips, what is the total cost of using the train?
A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000
Question 8
A firm's cost function is given by C(L,K) = 2L + 3K. If the firm's current inputs are L = 4 and K = 9, what is the marginal cost of labor?
A. 2
B. 4
C. 6
D. 8
Question 9
A firm's cost function is given by C = 2L + 3K. If the firm's output is 16 units, and the number of workers (L) is 4, find the total cost of production.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 10
A consumer protection law requires that all businesses must provide a 30-day cooling-off period for customers to return goods. If a customer buys a product on the 29th of January and wants to return it, what is the latest date the customer can return the product?
A. 28th February
B. 29th February
C. 1st March
D. 2nd March
Question 11
A firm's production function is given by Q = 2L^0.5 K^0.5. If the firm's capital (K) is fixed at 16 units, and labor (L) is increased from 4 units to 9 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
In a perfectly competitive market, the supply curve is a
A. Horizontal line
B. Vertical line
C. U-shaped curve
D. Inverted U-shaped curve
Question 13
A company has a policy of paying its employees a bonus of 10% of their salary if they meet their targets. If an employee's salary is ₦50,000 and they meet their targets, how much bonus will they receive?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 14
A company has a 10% chance of winning a contract worth ₦100,000. If the company wins the contract, it will earn a profit of ₦20,000. What is the expected value of the contract?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 15
In a perfectly competitive market, the demand curve for a firm's product is its marginal revenue curve. Which of the following is a characteristic of a perfectly competitive market?
A. Many buyers and sellers
B. Barriers to entry are high
C. Firms produce homogeneous products
D. Firms have complete control over prices

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