POST UTME COAL CITY UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
B. 20 days
C. 25 days
D. 30 days
Question 2
A consumer has a utility function U(X, Y) = 2X + 3Y. The prices of the goods are ₦2,000 and ₦3,000, respectively. The consumer's budget is ₦10,000. Calculate the consumer's optimal consumption bundle.
A. X = 2, Y = 3
B. X = 3, Y = 2
C. X = 4, Y = 1
D. X = 1, Y = 4
Question 3
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
B. Process B
C. Both processes have the same net present value
D. Neither process has a higher net present value
Question 4
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
C. 30 days
D. 35 days
Question 5
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
D. Increasing the insurance coverage
Question 6
In a perfectly competitive market, the law of diminishing marginal utility implies that as the quantity of a good consumed increases, the marginal utility derived from each additional unit of the good will eventually decrease. However, this decrease in marginal utility does not necessarily imply that the total utility derived from the good will also decrease. Explain why.
A. Because the law of diminishing marginal utility only applies to individual consumers, not to the market as a whole.
B. Because the total utility derived from a good is the sum of the marginal utilities of each unit consumed, and as long as the marginal utility of each unit is positive, the total utility will also be positive.
C. Because the law of diminishing marginal utility only applies to goods that are consumed, not to goods that are invested in.
D. Because the total utility derived from a good is a fixed quantity that does not change as the quantity of the good consumed increases.
Question 7
A firm's production function is given by Q = 100K^(1/2)L^(1/2), where Q is the quantity produced, K is the capital stock, and L is the labor force. If the labor force increases by 25% and the capital stock remains constant, what is the percentage change in the quantity produced?
A. 12.5%
B. 25%
C. 50%
D. 62.5%
Question 8
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?
A. Increased brand awareness
B. Improved customer engagement
C. Enhanced product sales
D. Reduced marketing costs
Question 9
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. decrease
B. increase
C. remain constant
D. move in the opposite direction
Question 10
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
D. To show the company's market value
Question 11
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
D. Research and Development
Question 12
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
C. ₦70,000
D. ₦80,000
Question 13
A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's assets increase by 15% and its liabilities remain constant, what is the percentage change in its equity?
A. 10%
B. 15%
C. 20%
D. 25%
Question 14
A life insurance policy pays a benefit to the policyholder's beneficiaries in the event of the policyholder's death. What is the name of the type of risk that this policy covers?
A. Mortality Risk
B. Liquidity Risk
C. Credit Risk
D. Market Risk
Question 15
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
B. Developing a contingency plan
C. Increasing the product's price
D. Reducing the product's features

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