POST UTME BSU 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's home and foreign trade activities involve exporting goods to various countries. Which of the following is a key consideration in determining the optimal export pricing strategy?
A. Market demand and supply
B. Production costs and capacity
C. Exchange rates and tariffs
D. Government regulations and policies
Question 2
In a perfectly competitive market, what is the relationship between the marginal revenue (MR) and marginal cost (MC) curves?
A. MR > MC
B. MR < MC
C. MR = MC
D. MR ≠ MC
Question 3
A firm's marketing strategy involves creating a brand identity that appeals to a specific demographic. Which of the following is a key element of this strategy?
A. Product differentiation
B. Target market segmentation
C. Brand positioning
D. Pricing strategy
Question 4
A company has the following cost function: C(x) = 2x^2 + 3x + 10. If the price of the product is ₦5, how many units should the company produce to minimize its average cost?
A. 2
B. 4
C. 6
D. 8
Question 5
A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.
A. The owner's personal assets are protected from business debts.
B. The owner's personal assets are at risk of being seized to settle business debts.
C. The business is responsible for the owner's personal debts.
D. The owner's personal debts are not affected by the business's financial situation.
Question 6
A company has a warehouse with a capacity of 10,000 units. If the company receives a shipment of 5,000 units, what is the new capacity of the warehouse?
A. 5,000 units
B. 10,000 units
C. 15,000 units
D. 20,000 units
Question 7
A bank's financial statements show a significant increase in profits over the past year. However, the bank's return on equity (ROE) has decreased. What does this suggest about the bank's financial performance?
A. The bank is becoming more profitable
B. The bank is becoming less profitable
C. The bank's profitability is stable
D. The bank's financial performance is improving
Question 8
A bank's reserve requirement is 10%. If the bank has ₦100 million in deposits, what is the amount of reserves required?
A. ₦5 million
B. ₦10 million
C. ₦15 million
D. ₦20 million
Question 9
A company's warehousing and stock control system is designed to minimize the time spent on receiving, storing, and shipping goods. Which of the following is a key benefit of this system?
A. Reduced inventory costs
B. Improved customer satisfaction
C. Increased storage capacity
D. Enhanced supply chain visibility
Question 10
A company's articles of association state that the company's capital is divided into 100,000 shares of ₦10 each. If the company issues 80,000 shares, what is the total amount of capital raised?
A. ₦800,000
B. ₦1,000,000
C. ₦1,200,000
D. ₦1,600,000
Question 11
A company's insurance policy covers losses due to natural disasters. However, the policy excludes losses due to floods. Which of the following best describes the type of risk this policy covers?
A. Natural disaster risk
B. Flood risk
C. Fire risk
D. Theft risk
Question 12
A company's insurance policy covers losses up to ₦10 million. If the company suffers a loss of ₦15 million, what is the amount of the claim?
A. ₦5 million
B. ₦10 million
C. ₦15 million
D. ₦20 million
Question 13
A company's marketing strategy involves creating a new product line that targets a specific demographic. The product line is designed to appeal to a younger audience, with a focus on sustainability and eco-friendliness. Which of the following marketing strategies is most likely to be used by this company?
A. Segmentation
B. Targeting
C. Positioning
D. Differentiation
Question 14
A sole trader is considering expanding their business by hiring employees. However, they are unsure about the legal implications of doing so. What type of business structure would the sole trader need to adopt in order to hire employees?
A. Partnership
B. Limited company
C. Sole trader
D. Cooperative
Question 15
A company has the following budget constraint: 2x + 3y = 12. If the price of x is ₦2 and the price of y is ₦3, how many units of y should the company produce to maximize its profit?
A. 4
B. 6
C. 8
D. 10

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