POST UTME CRAWFORD UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's Memorandum and Articles of Association are its constitutional documents. What are the main differences between these two documents?
A. The Memorandum outlines the company's objectives, while the Articles detail its internal management.
B. The Memorandum outlines the company's internal management, while the Articles detail its objectives.
C. The Memorandum and Articles are interchangeable terms.
D. The Memorandum is a document that is filed with the relevant authorities, while the Articles are a private document.
Question 2
A company is involved in the importation of goods into Nigeria. The company is considering the use of a new shipping route that is cheaper than the current route but has a higher risk of delays. Which of the following would be the most appropriate decision for the company?
A. To adopt the new shipping route to reduce costs.
B. To continue using the current shipping route to maintain reliability.
C. To conduct further research on the risks associated with the new shipping route.
D. To consult with stakeholders on the decision to adopt the new shipping route.
Question 3
A firm's production function is given by the equation Q = 2L^0.5K^0.5. If the firm's output is 100 units and the number of workers (L) is 25, what is the value of the capital stock (K)?
A. 25
B. 50
C. 100
D. 200
Question 4
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to produce 16 units of output, and the wage rate is ₦10 per hour, and the rental rate is ₦5 per unit of capital, what is the minimum cost of production?
A. ₦80
B. ₦100
C. ₦120
D. ₦150
Question 5
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units
Question 6
A firm's supply curve is given by the equation Q = 10 + 2P. If the price of the firm's product is ₦5, what is the quantity supplied?
A. 15
B. 20
C. 25
D. 30
Question 7
A firm's revenue function is given by R = 100P^2, where R is the revenue and P is the price. If the price is ₦10, what is the revenue?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 8
A bank's financial statements show a return on equity (ROE) of 12%. What does this indicate about the bank's profitability?
A. High profitability
B. Low profitability
C. Average profitability
D. Unsustainable profitability
Question 9
A company is considering exporting its product to a foreign market. Which of the following is a major advantage of exporting?
A. Increased competition
B. Reduced market share
C. Access to new customers
D. Lower production costs
Question 10
The concept of 'Gross Domestic Product' (GDP) is a measure of a nation's economic activity. Which of the following is NOT a component of GDP?
A. Imports
B. Exports
C. Consumption
D. Investment
Question 11
The diagram below shows a simple graph of supply and demand. If the price of the good increases, what will be the effect on the quantity supplied?
A. The quantity supplied will increase
B. The quantity supplied will decrease
C. The quantity supplied will remain the same
D. The quantity supplied will be reversed
Question 12
A firm's risk management strategy involves diversifying its investments to minimize risk. Which of the following is an example of diversification?
A. Investing in a single stock
B. Investing in a mix of stocks and bonds
C. Investing in a single industry
D. Investing in a single country
Question 13
A company is involved in the production of electronics in Nigeria. The company is considering the use of a new manufacturing process that is more efficient than the current process but has a higher risk of product defects. Which of the following would be the most appropriate decision for the company?
A. To adopt the new manufacturing process to increase efficiency.
B. To continue using the current manufacturing process to maintain product quality.
C. To conduct further research on the risks associated with the new manufacturing process.
D. To consult with stakeholders on the decision to adopt the new manufacturing process.
Question 14
A sole trader's business is considered a separate legal entity from its owner. This is an example of which of the following?
A. Separate legal entity
B. Partnership
C. Limited liability
D. Joint venture
Question 15
A firm's home trade strategy is most likely to be influenced by which of the following factors?
A. The firm's market share
B. The firm's target audience
C. The firm's production costs
D. The firm's profit margins

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