POST UTME CHRISTOPHER UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different modes of transportation for its goods: trucking and rail. The cost of trucking is ₦500 per unit, while the cost of rail is ₦300 per unit. If the company expects to transport 100 units, what is the total cost of transportation using rail?
A. ₦30,000
B. ₦30,500
C. ₦31,000
D. ₦31,500
Question 2
A company is considering a new investment opportunity in a foreign country. The company's financial manager has identified the following risks associated with the investment: political risk, economic risk, and exchange rate risk. Which of the following is a way to mitigate exchange rate risk?
A. Hedging
B. Diversification
C. Risk avoidance
D. Risk reduction
Question 3
A firm is considering two different production processes for a product. Process A has a fixed cost of ₦500,000 and a variable cost of ₦100 per unit. Process B has a fixed cost of ₦200,000 and a variable cost of ₦150 per unit. If the firm produces 10,000 units of the product, what is the total cost of production for each process?
A. Process A: ₦2,500,000; Process B: ₦2,000,000
B. Process A: ₦2,000,000; Process B: ₦2,500,000
C. Process A: ₦1,500,000; Process B: ₦1,000,000
D. Process A: ₦1,000,000; Process B: ₦1,500,000
Question 4
A _______ is a type of business organization that is owned and controlled by its members.
A. partnership
B. corporation
C. cooperative
D. sole proprietorship
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the firm wants to increase its production by 50% while keeping labor constant, what percentage increase in capital is required?
A. 25%
B. 30%
C. 35%
D. 40%
Question 6
A sole trader is a type of business ownership where one person owns and operates the business. Which of the following is a characteristic of a sole trader?
A. Unlimited liability
B. Limited liability
C. Single ownership
D. Multiple ownership
Question 7
A consumer protection agency has received a complaint from a customer who purchased a product online. The customer alleges that the product was not as described and was defective. Which of the following is a right that the consumer has under the Consumer Protection Act?
A. The right to a refund
B. The right to a replacement
C. The right to compensation
D. All of the above
Question 8
A firm is considering two different marketing strategies for a product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the firm expects to sell 10,000 units of the product per year, what is the total marketing cost for each strategy?
A. Strategy A: ₦1,000,000; Strategy B: ₦500,000
B. Strategy A: ₦500,000; Strategy B: ₦1,000,000
C. Strategy A: ₦1,500,000; Strategy B: ₦1,000,000
D. Strategy A: ₦1,000,000; Strategy B: ₦1,500,000
Question 9
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the company wants to increase its production by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
A marketing strategy is a plan of action designed to promote a product or service. Which of the following is a characteristic of a marketing strategy?
A. Targeting a specific market
B. Creating a unique product
C. Building brand awareness
D. Increasing sales
Question 11
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. What is the opportunity cost of producing a good?
A. The value of the good in terms of other goods
B. The cost of producing the good in terms of labor and capital
C. The opportunity cost of producing the good in terms of other goods
D. The market price of the good
Question 12
A firm is considering exporting its product to a foreign market. The firm's production costs are ₦100 per unit, and the market price in the foreign market is ₦250 per unit. If the firm expects to sell 5,000 units per year for 3 years, what is the minimum amount of foreign currency the firm needs to earn per year to break even?
A. ₦1,250,000
B. ₦1,500,000
C. ₦1,750,000
D. ₦2,000,000
Question 13
A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment in advertising, but the company expects a high return on investment (ROI) of 25%. Strategy B involves a lower initial investment in advertising, but the company expects a lower ROI of 10%. If the company has a budget of ₦1,000,000 for advertising, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective
Question 14
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's current inputs are L = 9 and K = 16, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 15
A bank offers a 5-year fixed deposit account with a 12% annual interest rate. If a customer deposits ₦100,000, how much will they receive at the end of the 5-year period?
A. ₦132,000
B. ₦135,000
C. ₦137,000
D. ₦140,000

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