POST UTME CALEB UNIVERSITY 2019 Commerce | Objective

Are you preparing for POST UTME CALEB UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The following diagram shows a demand curve and a supply curve for a product.
A. The equilibrium price is where the demand curve intersects the supply curve.
Correct B. The equilibrium quantity is where the demand curve intersects the supply curve.
C. The demand curve is downward sloping because consumers are willing to pay more for the product.
D. The supply curve is upward sloping because producers are willing to supply more of the product at a higher price.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company is considering two different marketing strategies for a new product.
A. The company should use a push strategy because it will allow them to control the distribution of the product.
B. The company should use a pull strategy because it will allow them to target specific customer segments.
Correct C. The company should use a combination of push and pull strategies because it will allow them to reach a wider audience.
D. The company should not use any marketing strategies because it will not affect the demand for the product.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
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.
Correct 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.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company is considering exporting a product to a foreign country.
A. The company should not export the product because it will be too expensive.
B. The company should export the product because it will increase their revenue.
Correct C. The company should export the product because it will allow them to diversify their market.
D. The company should not export the product because it will be too difficult to manage.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
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.
Correct 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.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A firm specializes in producing only one product. This specialization allows the firm to achieve economies of scale in production. However, it also exposes the firm to a higher risk of business failure. What is the name of this type of risk?
Correct A. Concentration Risk
B. Country Risk
C. Currency Risk
D. Credit Risk

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm's financial statements show that its current assets are ₦150,000 and its current liabilities are ₦120,000. What is the firm's working capital?
Correct A. ₦30,000
B. ₦60,000
C. ₦90,000
D. ₦120,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
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 contribution margin per unit?
Correct A. ₦95
B. ₦90
C. ₦85
D. ₦80

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
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?
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
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?
Correct A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦200,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A firm specializes in the production of a single product, which is a type of commodity. If the firm's production function is given by Q = 100L^(1/2)K^(1/2), where Q is the quantity produced, L is labor, and K is capital, what is the marginal product of labor (MPL) when L = 16 and K = 9?
Correct A. 6.25
B. 12.5
C. 25
D. 50

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
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
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A firm is considering the use of just-in-time (JIT) inventory management system. If the firm expects to receive a shipment of raw materials every 10 days, what is the average inventory level in the warehouse?
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A firm is considering the use of a warehouse management system (WMS) to manage its inventory. If the firm expects to receive a shipment of raw materials every 5 days, what is the average inventory level in the warehouse?
A. ₦25,000
B. ₦50,000
Correct C. ₦75,000
D. ₦100,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A firm is considering the use of a supply chain management (SCM) system to manage its inventory. If the firm expects to receive a shipment of raw materials every 10 days, what is the average inventory level in the warehouse?
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
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
Correct D. Separate business registration

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company's articles of association can be amended to change its
A. Objectives
B. Share capital
C. Directors' remuneration
Correct D. Shareholders' rights

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A warehouse's inventory turnover ratio is calculated as the cost of goods sold divided by the
Correct A. Average inventory
B. Total inventory
C. Inventory turnover period
D. Inventory holding cost

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A production process can be classified as a
A. Job shop
B. Batch process
Correct C. Assembly line
D. Continuous process

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A marketing mix strategy involves the combination of
Correct A. Product, price, and promotion
B. Product, price, and place
C. Product, promotion, and people
D. Product, price, and people

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
In a sole trade business, what is the primary advantage of adopting a sole proprietorship structure?
A. Limited liability
B. Easy to set up
Correct C. Flexibility in decision-making
D. Tax benefits

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company is considering the adoption of a new production technology. Which of the following is a key factor to consider in the decision-making process?
A. Cost savings
B. Increased market share
Correct C. Environmental impact
D. Employee morale

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
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
Correct C. To provide repair services
D. To offer a discount

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
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
Correct C. Environmental impact
D. Employee morale

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
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
Correct C. To improve customer satisfaction
D. To increase market share

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

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:
Chat with Support