POST UTME COAL CITY UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different transportation modes to move goods from a factory to a warehouse. Mode A costs ₦500 per unit and has a fixed cost of ₦10,000. Mode B costs ₦300 per unit and has a fixed cost of ₦20,000. If the company needs to transport 100 units, which mode should it choose?
A. Mode A
B. Mode B
C. Both modes are equally optimal
D. Neither mode is optimal
Question 2
A firm imports goods worth ₦2,000,000 from a foreign country. The import duty is 10% of the value of the goods. What is the amount of duty paid?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 3
A company is considering the introduction of a new product. The company's marketing research indicates that the product will have a high demand, but the production costs will be high. Which of the following marketing strategies would be most appropriate for this product?
A. Product differentiation
B. Market segmentation
C. Product positioning
D. Pricing strategy
Question 4
A bank has the following balance sheet: Assets = 100, Liabilities = 50, Equity = 50. If the bank wants to increase its equity by 10%, what is the required increase in assets?
A. 10
B. 20
C. 30
D. 40
Question 5
A company's Articles of Association is a document that outlines its
A. Share Capital Structure
B. Directors' Remuneration
C. Business Objectives
D. Management Structure
Question 6
A company's dividend payout ratio is 50%. If its net income is ₦1,500,000 and its dividend payment is ₦750,000, what is its earnings per share (EPS)?
A. ₦1.50
B. ₦1.75
C. ₦2.00
D. ₦2.50
Question 7
A company has the following production function: Q = 2L^0.5 * K^0.5. If the price of labor is 10 per unit and the price of capital is 20 per unit, and the company wants to maximize its profit, what is the optimal level of labor and capital?
A. L = 100, K = 100
B. L = 50, K = 50
C. L = 200, K = 200
D. L = 150, K = 150
Question 8
A firm is considering two export strategies for its product: Strategy A involves exporting to a country with a high demand for the product but a high tariff of 20%, while Strategy B involves exporting to a country with a low demand for the product but a low tariff of 5%. If the firm expects to sell 10,000 units of the product, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally viable
D. Neither strategy is viable
Question 9
A country is considering the imposition of tariffs on imported goods. Which of the following effects would the tariffs have on the country's trade balance?
A. The tariffs would increase the country's trade balance.
B. The tariffs would decrease the country's trade balance.
C. The tariffs would have no effect on the country's trade balance.
D. The tariffs would increase the country's imports and decrease its exports.
Question 10
A firm has the following cost function: C = 100 + 2L + 3K. If the price of labor is 10 per unit and the price of capital is 20 per unit, and the firm wants to minimize its cost, what is the optimal level of labor and capital?
A. L = 50, K = 50
B. L = 100, K = 100
C. L = 200, K = 200
D. L = 150, K = 150
Question 11
A firm specializes in producing a single product, which is a type of electronic device. The production process involves several stages, including design, prototyping, testing, and manufacturing. The firm uses a just-in-time (JIT) inventory system to manage its inventory levels. What is the primary advantage of using a JIT system in this context?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 12
A firm is considering implementing a new quality control process that uses a statistical approach. The firm has conducted a cost-benefit analysis and found that the new process will reduce product defects but may also increase the cost of quality control. What is the primary consideration that the firm should take into account?
A. The potential increase in cost of quality control
B. The reduction in product defects
C. The impact on the environment
D. The impact on the firm's reputation
Question 13
A firm imports goods from a foreign market. The firm's import function is given by Q = 100Y^0.5, where Q is the quantity imported and Y is the exchange rate. If the exchange rate is 0.8, what is the quantity imported?
A. 141.42
B. 161.42
C. 181.42
D. 201.42
Question 14
A company is considering two insurance policies: Policy A has a premium of ₦50,000 per year and covers up to ₦1,000,000 in damages, while Policy B has a premium of ₦30,000 per year and covers up to ₦500,000 in damages. If the company expects to incur damages of ₦750,000, which policy should it choose?
A. Policy A
B. Policy B
C. Both policies are equally viable
D. Neither policy is viable
Question 15
A firm is considering outsourcing some of its production processes to a third-party supplier. The firm has conducted a risk assessment and found that the outsourcing arrangement may increase the risk of product defects. What is the primary consideration that the firm should take into account?
A. The potential increase in product defects
B. The reduction in costs
C. The impact on the environment
D. The impact on the firm's reputation

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