POST UTME CRAWFORD UNIVERSITY 2018 Commerce | Objective

Are you preparing for POST UTME CRAWFORD UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy to set up
Correct C. Flexibility in decision-making
D. No tax benefits

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company has a capital structure consisting of 60% debt and 40% equity. If the company's cost of debt is 8% and the cost of equity is 12%, what is the company's weighted average cost of capital (WACC)?
Correct A. 6%
B. 8%
C. 10%
D. 12%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A firm is considering two marketing strategies: a high-low pricing strategy or a penetration pricing strategy. Which strategy is more likely to increase market share?
A. High-low pricing
Correct B. Penetration pricing
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A consumer protection law requires that all goods sold in a market must meet certain safety standards. If a manufacturer fails to meet these standards, what is the likely consequence?
A. The manufacturer will be fined
B. The manufacturer will be sued
Correct C. The manufacturer will be required to recall the product
D. The manufacturer will be allowed to continue selling the product

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased market share
B. Reduced competition
Correct C. Increased revenue
D. Reduced production costs

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
In a perfectly competitive market, the supply curve is typically upward-sloping because
Correct A. firms are willing to supply more of a good at a higher price
B. firms are willing to supply less of a good at a higher price
C. firms are willing to supply the same quantity of a good at any price
D. firms are willing to supply more of a good at a lower price

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 32
Correct B. 64
C. 128
D. 256

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A firm's revenue function is given by R = 100Q - 2Q^2. If the firm's current price is 10 per unit, what is the firm's current revenue?
A. 1000
Correct B. 2000
C. 3000
D. 4000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A firm's cost function is given by C = 50 + 20L + 10K. If the firm's current labor and capital inputs are L = 5 and K = 3, respectively, what is the firm's current cost?
A. 250
B. 300
Correct C. 350
D. 400

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A firm's profit function is given by P = R - C. If the firm's current revenue and cost functions are R = 100Q - 2Q^2 and C = 50 + 20L + 10K, respectively, what is the firm's current profit?
A. 50
Correct B. 100
C. 150
D. 200

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
Correct B. decrease
C. remain constant
D. move in the opposite direction

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A sole trader is a type of business ownership where one person owns and operates the business. What is the main advantage of being a sole trader?
A. Limited liability
B. Unlimited liability
C. Easy to set up
Correct D. Flexibility in decision-making

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company is a type of business ownership where the ownership is divided into shares. What is the main disadvantage of being a company?
A. Limited liability
B. Unlimited liability
Correct C. Complexity in decision-making
D. Difficulty in raising capital

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
The Consumer Protection Act of 1999 provides protection to consumers in Nigeria. What is one of the rights of a consumer under this Act?
Correct A. The right to return goods
B. The right to a refund
C. The right to compensation
D. The right to sue the seller

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
The Insurance Act of 2003 provides a framework for the insurance industry in Nigeria. What is one of the types of insurance policies that can be issued under this Act?
A. Life insurance
Correct B. General insurance
C. Health insurance
D. Travel insurance

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
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 the same
D. become negative

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company's marketing strategy involves creating a brand identity that is unique and memorable. This approach is an example of
A. segmentation
B. positioning
Correct C. branding
D. target marketing

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A consumer purchases a product with a price of ₦500 and a 10% discount. The amount of the discount is
A. ₦50
Correct B. ₦100
C. ₦150
D. ₦200

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A warehouse has a storage capacity of 1000 units. If 300 units are already stored, the remaining capacity is
A. 200
B. 300
C. 400
Correct D. 500

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's insurance policy has a deductible of ₦1000. If a claim of ₦5000 is made, the amount paid by the insurer is
A. ₦4000
Correct B. ₦3000
C. ₦2000
D. ₦1000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A sole trader's business is considered a separate legal entity from its owner. Discuss.
A. True
Correct B. False
C. Depends on the type of business
D. Not applicable

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company's Memorandum of Association is a legal document that outlines the company's objectives and powers. Explain.
Correct A. True
B. False
C. Depends on the type of company
D. Not applicable

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A warehouse's inventory management system uses the First-In-First-Out (FIFO) method to track stock. Discuss the advantages and disadvantages of this method.
Correct A. Advantages: reduces stockouts, minimizes waste; Disadvantages: may lead to stock obsolescence, requires regular inventory checks
B. Advantages: increases stock turnover, reduces storage costs; Disadvantages: may lead to stockouts, requires complex inventory management
C. Advantages: reduces stock obsolescence, minimizes waste; Disadvantages: may lead to stockouts, requires regular inventory checks
D. Advantages: increases stock turnover, reduces storage costs; Disadvantages: may lead to stock obsolescence, requires complex inventory management

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A foreign trade agreement between two countries involves the exchange of goods and services. Explain the concept of comparative advantage and how it applies to international trade.
Correct A. Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than another country
B. Comparative advantage refers to a country's ability to produce a good or service at a higher opportunity cost than another country
C. Comparative advantage refers to a country's ability to produce a good or service at the same opportunity cost as another country
D. Comparative advantage refers to a country's ability to produce a good or service at a lower price than another country

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A business's risk management strategy involves identifying, assessing, and mitigating potential risks. Explain the concept of risk management and its importance in business.
Correct A. Risk management involves identifying, assessing, and mitigating potential risks to minimize their impact on the business
B. Risk management involves identifying, assessing, and exploiting potential risks to maximize their impact on the business
C. Risk management involves ignoring potential risks and hoping they do not occur
D. Risk management involves transferring potential risks to another party

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support