POST UTME CALEB UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
A company 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 company operating in?
A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. Oligopoly
Question 3
A firm's insurance policy covers losses due to fire, theft, and natural disasters. The premium for the policy is ₦500,000 per year. If the firm experiences a loss of ₦200,000 due to fire, how much will it have to pay out of pocket?
A. ₦0
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 4
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is a primary objective of public relations in this context?
A. To increase brand awareness
B. To persuade customers to buy the product
C. To improve the company's image
D. To reduce production costs
Question 5
A company is considering launching a new product in a foreign market. The company has conducted market research and determined that the demand for the product is elastic. However, the company is concerned about the potential risks associated with entering a new market. What is the most appropriate strategy for the company to minimize these risks?
A. Conduct further market research to gather more data.
B. Partner with a local company to share the risks.
C. Launch a pilot project to test the market.
D. Use a standardized marketing strategy that has been successful in other markets.
Question 6
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. Which of the following is NOT a characteristic of a USP?
A. It is a statement that highlights the product's features and benefits
B. It is a statement that emphasizes the product's price advantage
C. It is a statement that focuses on the product's quality
D. It is a statement that is not relevant to the product's marketing strategy
Question 7
A bank's financial statements show a significant increase in non-performing loans. Which of the following financial ratios is most likely to be affected?
A. Return on Assets (ROA)
B. Return on Equity (ROE)
C. Debt-to-Equity Ratio
D. Current Ratio
Question 8
In a perfectly competitive market, the law of one price dictates that the price of a good is determined by the intersection of the supply and demand curves. However, this is not always the case. Consider a market where the demand curve is inelastic and the supply curve is perfectly inelastic. What is the effect on the equilibrium price and quantity?
A. The equilibrium price and quantity remain unchanged.
B. The equilibrium price increases, but the quantity remains unchanged.
C. The equilibrium price decreases, but the quantity remains unchanged.
D. The equilibrium price and quantity both increase.
Question 9
A consumer protection agency receives a complaint about a company's unfair contract terms. Which of the following laws is most likely to be relevant?
A. The Consumer Protection Act
B. The Unfair Contract Terms Act
C. The Trade Practices Act
D. The Competition and Consumer Protection Act
Question 10
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦10,000,000, how much cash must it reserve?
A. ₦2,000,000
B. ₦1,500,000
C. ₦2,500,000
D. ₦3,000,000
Question 11
A company is considering two different advertising strategies to promote its new product. The first strategy involves using social media platforms to reach a wider audience, while the second strategy involves using print media to target a specific demographic. Which of the following is a benefit of using social media platforms?
A. It is more cost-effective than print media
B. It allows for real-time engagement with customers
C. It is more targeted than social media
D. It is more effective than social media
Question 12
A company has a contract with a supplier to purchase a certain quantity of raw materials at a fixed price. However, the supplier has informed the company that there will be a shortage of raw materials and that the price will increase by 20%. What is the effect on the company's profit margin?
A. The profit margin will increase by 20%
B. The profit margin will decrease by 20%
C. The profit margin will remain unchanged.
D. The profit margin will increase by 10%
Question 13
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 operating in?
A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. Oligopoly
Question 14
A consumer has purchased a product with a warranty that covers defects in materials and workmanship for a period of one year. However, the consumer has used the product extensively and has not followed the recommended maintenance instructions. What is the likelihood that the warranty will cover any defects in the product?
A. High
B. Medium
C. Low
D. Very Low
Question 15
A company is considering two different advertising strategies to promote its new product. The first strategy involves using social media platforms to reach a wider audience, while the second strategy involves using print media to target a specific demographic. Which of the following is a benefit of using social media platforms?
A. It is more cost-effective than print media
B. It allows for real-time engagement with customers
C. It is more targeted than social media
D. It is more effective than social media

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