POST UTME CHRISTOPHER UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's average total cost (ATC) is the total cost divided by the quantity produced. Explain why the ATC curve is downward sloping in the case of a perfectly competitive market.
A. Because the ATC curve is downward sloping due to the law of increasing opportunity cost.
B. Because the ATC curve is downward sloping due to the law of diminishing returns.
C. Because the ATC curve is downward sloping due to the firm's inability to influence the market price.
D. Because the ATC curve is downward sloping due to the firm's inability to influence the market quantity.
Question 2
A company's business units are organized into departments, each with its own manager. Which of the following is a characteristic of a departmentalized organization?
A. Flat organizational structure
B. Functional departmentalization
C. Divisional departmentalization
D. Matrix departmentalization
Question 3
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. No tax benefits
Question 4
A sole trader's business is affected by the economic downturn. What could be the impact on the business?
A. Increase in sales
B. Decrease in sales
C. No impact
D. Increase in profits
Question 5
A firm's marginal revenue product (MRP) is the change in total revenue resulting from a one-unit increase in the quantity of a variable input. Explain why the MRP curve is downward sloping in the case of a perfectly competitive market.
A. Because the MRP curve is downward sloping due to the law of increasing opportunity cost.
B. Because the MRP curve is downward sloping due to the law of diminishing returns.
C. Because the MRP curve is downward sloping due to the firm's inability to influence the market price.
D. Because the MRP curve is downward sloping due to the firm's inability to influence the market quantity.
Question 6
A bank's cash reserve ratio is 10%. If the bank has a total deposit of ₦10,000,000, how much cash must it reserve?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 7
A company's profit is ₦500,000. If it has a tax rate of 25%, what is its net profit?
A. ₦375,000
B. ₦375,000
C. ₦375,000
D. ₦375,000
Question 8
A company has a warehouse with a capacity of 600 units. If the company's sales are expected to increase by 20% next quarter, what is the minimum number of units the warehouse must be able to store to meet the increased demand?
A. 720
B. 800
C. 900
D. 1000
Question 9
A company's supply chain management involves the transportation of goods from the supplier to the customer. What is the primary mode of transportation used in this process?
A. Road
B. Rail
C. Air
D. Sea
Question 10
In a perfectly competitive market, the demand curve for a firm's product is its marginal revenue curve. What is the implication of this for the firm's profit-maximizing output level?
A. The firm will produce at the point where MR = MC
B. The firm will produce at the point where MR = P
C. The firm will produce at the point where MR = ATC
D. The firm will produce at the point where MR = AFC
Question 11
A consumer purchases a product online and receives a damaged item. What is the consumer's right under the Consumer Protection Act?
A. To return the product for a full refund
B. To exchange the product for a similar item
C. To claim compensation for damages
D. To report the seller to the authorities
Question 12
In a perfectly competitive market, the supply curve is downward sloping because firms are willing to produce more at a lower price due to the law of increasing opportunity cost. However, this law is not applicable in the case of a firm that is a price taker. Explain why.
A. Because the firm is a price taker and cannot influence the market price.
B. Because the firm is a price setter and can influence the market price.
C. Because the firm is a monopolist and has market power.
D. Because the firm is a monopsonist and has market power.
Question 13
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee's annual salary is ₦500,000, what is the amount of the bonus?
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 14
A company has two warehouses, A and B, with capacities of 500 and 300 units respectively. If the company's sales are expected to increase by 15% next quarter, what is the minimum number of units the warehouses must be able to store to meet the increased demand?
A. 700
B. 800
C. 900
D. 1000
Question 15
A company is considering a foreign market entry strategy. What is the primary reason for this decision?
A. To increase market share
B. To reduce costs
C. To improve product quality
D. To expand into new markets

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