POST UTME CALEB UNIVERSITY 2019 Commerce | Objective

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Question 1
A firm's foreign trade involves exporting goods to a country with a different currency. If the exchange rate is 1 USD = 360 Naira, and the firm exports goods worth 10,000, how much is the export worth in Naira?
A. ₦3,600,000
B. ₦3,600,000
C. ₦3,600,000
D. ₦3,600,000
Question 2
A company has a policy of offering a discount to customers who pay their bills on time. What is the primary purpose of this policy?
A. To increase revenue
B. To reduce costs
C. To improve customer satisfaction
D. To increase market share
Question 3
A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the company expects to sell 1000 units of the product at a price of ₦100 per unit, what is the total revenue generated by each strategy?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 4
A consumer purchases a product with a warranty. What is the primary purpose of the warranty?
A. To provide a refund
B. To offer a replacement
C. To provide repair services
D. To offer a discount
Question 5
A firm purchases a liability insurance policy with a premium of 500 per year. If the firm's expected loss is 1000 per year, what is the firm's expected profit?
A. 500
B. 1000
C. 1500
D. 2000
Question 6
A company is considering the use of a new transportation mode. Which of the following is a key factor to consider in the decision-making process?
A. Cost savings
B. Increased market share
C. Environmental impact
D. Employee morale
Question 7
A company is considering using a just-in-time inventory system.
A. The company should not use a just-in-time inventory system because it will be too expensive.
B. The company should use a just-in-time inventory system because it will reduce their inventory costs.
C. The company should use a just-in-time inventory system because it will improve their customer service.
D. The company should not use a just-in-time inventory system because it will be too difficult to manage.
Question 8
A firm specializes in producing a single product, which is sold in a competitive market. If the firm's production function is given by Q = 100L^0.5, where Q is the quantity produced and L is the labor input, and the market price of the product is P = 10Q^(-0.5), what is the firm's profit-maximizing level of labor input?
A. 20
B. 30
C. 40
D. 50
Question 9
A firm's production process involves the use of a machine that requires a ₦5,000 maintenance cost every month. If the firm produces 1,000 units of a product per month, and each unit sells for ₦100, what is the firm's total revenue per month?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦200,000
Question 10
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. move in the opposite direction
Question 11
A bank's investment portfolio includes stocks, bonds, and mutual funds. If the bank allocates 40% of its portfolio to stocks, 30% to bonds, and the remaining 30% to mutual funds, and it has a total portfolio value of ₦10,000,000, how much is allocated to mutual funds?
A. ₦3,000,000
B. ₦3,000,000
C. ₦3,000,000
D. ₦3,000,000
Question 12
A company has a product liability insurance policy that covers them against losses due to product defects.
A. The company should not worry about product defects because the insurance policy will cover them.
B. The company should take steps to prevent product defects because it will reduce the risk of losses.
C. The company should increase the premium on the insurance policy because it will reduce the risk of losses.
D. The company should not purchase the insurance policy because it is too expensive.
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm increases labor from 4 to 9 units, and capital from 9 to 16 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 14
A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?
A. Limited liability
B. Separate taxation
C. Separate bank account
D. Separate business registration
Question 15
A firm's financial statements show that its total assets are ₦500,000 and its total liabilities are ₦300,000. What is the firm's equity?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

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