POST UTME COAL CITY UNIVERSITY 2021 Commerce | Objective

Are you preparing for POST UTME COAL CITY UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. decrease
Correct B. increase
C. remain constant
D. move in the opposite direction

Correct Answer: B

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Question 2
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to produce 16 units of output, and it has 4 units of labor, how many units of capital does it need?
A. 4
B. 8
Correct C. 16
D. 32

Correct Answer: C

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Question 3
A company is considering two different investment opportunities. Opportunity A has a 10% chance of returning 100,000 and a 90% chance of returning 0. Opportunity B has a 20% chance of returning 150,000 and a 80% chance of returning 0. Which opportunity has a higher expected return?
A. Opportunity A
Correct B. Opportunity B
C. Both opportunities have the same expected return
D. Neither opportunity has a higher expected return

Correct Answer: B

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Question 4
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to sell 50 units of output, what price should it charge?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 5
A company is considering two different production processes. Process A requires an initial investment of 100,000 and generates 120,000 in revenue per year. Process B requires an initial investment of 150,000 and generates 180,000 in revenue per year. Which process has a higher net present value?
A. Process A
Correct B. Process B
C. Both processes have the same net present value
D. Neither process has a higher net present value

Correct Answer: B

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Question 6
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a primary goal of advertising in this mix?
A. To inform customers about the company's products
B. To persuade customers to buy the company's products
C. To create a sense of urgency among customers
Correct D. To educate customers about the company's mission statement

Correct Answer: D

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Question 7
A firm's warehouse is designed to store a large quantity of goods. Which of the following is a characteristic of a warehouse?
A. It is a place where goods are manufactured
B. It is a place where goods are sold
Correct C. It is a place where goods are stored
D. It is a place where goods are transported

Correct Answer: C

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Question 8
A company's financial statements include a balance sheet, an income statement, and a cash flow statement. Which of the following is NOT a primary purpose of the balance sheet?
A. To show the company's profitability
B. To show the company's liquidity
C. To show the company's assets, liabilities, and equity
Correct D. To show the company's market value

Correct Answer: D

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Question 9
A firm's marketing mix includes product, price, promotion, and place. Which of the following is NOT a component of the marketing mix?
A. Product
B. Price
C. Promotion
Correct D. Research and Development

Correct Answer: D

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Question 10
A company's financial statements include a statement of cash flows. Which of the following is NOT a type of cash flow?
A. Operating cash flow
B. Investing cash flow
C. Financing cash flow
Correct D. Tax cash flow

Correct Answer: D

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Question 11
A company has two production lines, A and B. Line A produces 60% of the company's output, while line B produces 40%. If the company's total output is 100 units, how many units are produced by line B?
A. 40
B. 50
C. 60
Correct D. 70

Correct Answer: D

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Question 12
A firm has two products, X and Y. Product X has a fixed cost of ₦10,000 and a variable cost of ₦5 per unit. Product Y has a fixed cost of ₦15,000 and a variable cost of ₦3 per unit. If the selling price of product X is ₦10 per unit and the selling price of product Y is ₦8 per unit, which product should the firm produce to maximize profit?
Correct A. Product X
B. Product Y
C. Both products
D. Neither product

Correct Answer: A

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Question 13
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units and has a current stock of 3,000 units. If the company receives another shipment of 2,000 units, what is the new stock level?
A. 8,000
B. 9,000
Correct C. 10,000
D. 11,000

Correct Answer: C

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Question 14
A firm has a marketing budget of ₦100,000. The firm wants to allocate the budget to advertising and promotion. If the cost of advertising is ₦5 per unit and the cost of promotion is ₦3 per unit, and the firm wants to reach a minimum of 10,000 customers, what is the optimal allocation of the budget?
A. ₦50,000 for advertising and ₦50,000 for promotion
Correct B. ₦60,000 for advertising and ₦40,000 for promotion
C. ₦70,000 for advertising and ₦30,000 for promotion
D. ₦80,000 for advertising and ₦20,000 for promotion

Correct Answer: B

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Question 15
A company has a risk management policy that requires it to maintain a minimum of ₦50,000 in its risk fund. If the company has a current risk fund balance of ₦30,000 and receives a premium of ₦20,000, what is the new balance in the risk fund?
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 16
A consumer protection agency has been established to regulate the activities of a company that sells defective products. The agency has received several complaints about the company's failure to honor warranties. Which of the following is a possible consequence of the agency's inaction?
A. The company's reputation will be damaged.
Correct B. The consumers will lose confidence in the agency.
C. The company will be forced to recall the defective products.
D. The agency will be held liable for the company's actions.

Correct Answer: B

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Question 17
A company has developed a new marketing strategy that involves using social media influencers to promote its products. The company has allocated a budget of ₦500,000 for this purpose. Which of the following is a possible benefit of this strategy?
Correct A. Increased brand awareness
B. Improved customer engagement
C. Enhanced product sales
D. Reduced marketing costs

Correct Answer: A

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Question 18
A warehouse manager has been tasked with optimizing the storage capacity of a warehouse. The warehouse has a total floor area of 1,000 square meters and a ceiling height of 5 meters. Which of the following is a possible way to increase the storage capacity?
A. Installing shelving units
Correct B. Using vertical storage containers
C. Increasing the ceiling height
D. Expanding the warehouse

Correct Answer: B

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Question 19
A company has developed a new product that is expected to generate significant revenue. However, the company's marketing team has identified a potential risk that could impact sales. Which of the following is a possible way to mitigate this risk?
A. Conducting market research
Correct B. Developing a contingency plan
C. Increasing the product's price
D. Reducing the product's features

Correct Answer: B

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Question 20
A company has been sued by a customer who claims that the company's product caused damage to their property. The company's insurance policy has a deductible of ₦200,000. Which of the following is a possible way to minimize the company's financial loss?
A. Paying the deductible
B. Negotiating with the customer
C. Filing a counterclaim
Correct D. Increasing the insurance coverage

Correct Answer: D

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Question 21
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 200 units, what is the maximum number of days the warehouse can supply the market without reordering?
A. 20 days
B. 25 days
Correct C. 30 days
D. 35 days

Correct Answer: C

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Question 22
A company has a warehouse with a capacity of 5,000 units. If the company's average daily sales are 150 units, what is the maximum number of days the warehouse can supply the market without reordering?
A. 15 days
Correct B. 20 days
C. 25 days
D. 30 days

Correct Answer: B

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Question 23
A company's sole trader has a warehouse with a capacity of 8,000 units. If the company's average daily sales are 250 units, what is the maximum number of days the warehouse can supply the market without reordering?
A. 20 days
B. 25 days
Correct C. 30 days
D. 35 days

Correct Answer: C

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Question 24
A company has a warehouse with a capacity of 12,000 units. If the company's average daily sales are 300 units, what is the maximum number of days the warehouse can supply the market without reordering?
A. 25 days
B. 30 days
Correct C. 35 days
D. 40 days

Correct Answer: C

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Question 25
A company's sole trader has a warehouse with a capacity of 6,000 units. If the company's average daily sales are 200 units, what is the maximum number of days the warehouse can supply the market without reordering?
A. 15 days
Correct B. 20 days
C. 25 days
D. 30 days

Correct Answer: B

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