POST UTME COVENANT UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering exporting its products to a foreign market. Which of the following is a key factor to consider when evaluating the feasibility of this decision?
A. Market demand and competition
B. Trade agreements and regulations
C. Currency exchange rates and inflation
D. Transportation costs and logistics
Question 2
A consumer protection law may provide for the right to a refund in certain circumstances. What is the primary condition for this right to be exercised?
A. The product is defective or faulty
B. The product is not as described
C. The product is not fit for purpose
D. The product is not delivered within the specified timeframe
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor increases by 20%, what is the effect on the firm's output?
A. Output increases by 10%.
B. Output decreases by 10%.
C. Output remains unchanged.
D. Output increases by 20%.
Question 4
A firm's profit function is given by Φ = R - C. If the price of the firm's product increases by 15% and the price of labor increases by 10%, what is the effect on the firm's profit?
A. Profit increases by 12.5%.
B. Profit increases by 15%.
C. Profit increases by 17.5%.
D. Profit remains unchanged.
Question 5
A consumer protection agency has received a complaint from a customer who was sold a defective product. The product was sold for ₦50,000, and the customer is seeking a refund. If the product's market value is ₦30,000, what is the amount of compensation the customer is entitled to?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 6
A company has a production process that involves the use of a machine that costs ₦200,000 to purchase and ₦50,000 per year to maintain. If the machine is expected to last for 5 years and produce 10,000 units per year, what is the total cost of production for the first year?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 7
A sole trader's business is registered under the sole trader's name. What is the primary advantage of this type of business registration?
A. Easy to set up and maintain
B. Limited liability protection
C. Flexibility in decision-making
D. No need for formal accounting records
Question 8
A firm's human resource management involves the planning, organizing, and controlling of human resources. Which of the following is a key benefit of human resource management?
A. Improved productivity
B. Increased employee satisfaction
C. Reduced turnover
D. All of the above
Question 9
A warehouse manager is responsible for maintaining an accurate inventory of stock. What is the primary method used to achieve this?
A. First-In-First-Out (FIFO) method
B. Last-In-First-Out (LIFO) method
C. Weighted Average Cost (WAC) method
D. Inventory Management System (IMS)
Question 10
A firm's financial management involves the planning, organizing, and controlling of financial resources. Which of the following is a key objective of financial management?
A. To maximize profits
B. To minimize costs
C. To increase market share
D. To increase shareholder value
Question 11
A business is considering the purchase of a new machine to increase production capacity. What is the primary factor to consider when evaluating the cost-benefit analysis?
A. Initial purchase price and maintenance costs
B. Expected lifespan and residual value
C. Opportunity costs and alternative uses
D. Market demand and competition
Question 12
A firm's marketing mix consists of four Ps: product, price, promotion, and place. Which of the following is NOT one of the four Ps?
A. Product
B. Price
C. Promotion
D. Packaging
Question 13
A bank is considering offering a new credit card product to its customers. Which of the following is a key consideration when evaluating the potential profitability of this product?
A. Interest rates and fees
B. Credit risk and default rates
C. Marketing and advertising costs
D. Customer acquisition and retention
Question 14
A bank has a loan portfolio that consists of 80% fixed-rate loans and 20% variable-rate loans. If the average interest rate on the fixed-rate loans is 12% per annum and the average interest rate on the variable-rate loans is 15% per annum, what is the average interest rate on the entire loan portfolio?
A. 12%
B. 13%
C. 14%
D. 15%
Question 15
A company's board of directors has decided to issue new shares to raise capital for a new project. What is the primary benefit of this decision?
A. Increased ownership and control
B. Improved financial stability
C. Enhanced market value and reputation
D. Reduced debt and liability

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