POST UTME CRAWFORD UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's transportation costs are high due to the distance between its warehouse and customers. Which of the following is a way to reduce transportation costs?
A. Using a third-party logistics provider
B. Implementing a just-in-time inventory system
C. Reducing the distance between the warehouse and customers
D. Increasing the frequency of deliveries
Question 2
A consumer protection law requires businesses to provide clear and accurate information about their products. Which of the following is a key benefit of this law?
A. Increased consumer trust
B. Improved product quality
C. Enhanced business reputation
D. Better regulatory compliance
Question 3
A firm's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). Which of the following statements is true about the accounting equation?
A. Assets = Liabilities + Equity
B. Assets = Liabilities - Equity
C. Assets = Equity - Liabilities
D. Equity = Liabilities + Assets
Question 4
A company's communication strategy involves using social media to engage with customers. Which of the following is a benefit of using social media?
A. Increased brand awareness
B. Improved customer service
C. Enhanced customer engagement
D. Reduced marketing costs
Question 5
A firm's cost of capital is the rate of return that investors expect to earn on their investment in the firm
A. true
B. false
C. it depends on the type of investment
D. it depends on the industry
Question 6
A bank is offering a loan of ₦500,000 at an interest rate of 12% per annum. The loan is repayable in 5 years. What is the total interest paid over the 5-year period?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 7
A firm is considering a new marketing strategy that involves increasing its advertising budget by 20%. However, the firm also expects a 10% decrease in sales due to increased competition. What is the net effect on the firm's revenue?
A. 10% increase
B. 5% decrease
C. 5% increase
D. 10% decrease
Question 8
A company is exporting goods to a foreign country. The foreign country has imposed a tariff of 20% on the imported goods. What is the likely effect on the company's profit margin?
A. The profit margin will increase
B. The profit margin will decrease
C. The profit margin will remain the same
D. The profit margin will increase by 20%
Question 9
A firm's insurance policy covers losses due to natural disasters. Which of the following is a type of insurance policy?
A. Liability insurance
B. Property insurance
C. Casualty insurance
D. Workers' compensation insurance
Question 10
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve
Question 11
A firm's insurance policy covers losses due to natural disasters. Which of the following is a type of insurance policy?
A. Liability insurance
B. Property insurance
C. Casualty insurance
D. Workers' compensation insurance
Question 12
A sole trader's business is affected by the following factors: market demand, competition, and government regulations. Which of the following is a key characteristic of a sole trader's business?
A. Limited liability
B. Unlimited liability
C. Separate business entity
D. No business continuity
Question 13
A company's marketing strategy involves a combination of advertising, sales promotions, and public relations. Which of the following is a key benefit of using a combination of these tactics?
A. Increased brand awareness
B. Improved customer engagement
C. Enhanced product differentiation
D. Better return on investment
Question 14
A company is considering two different marketing strategies: a push strategy and a pull strategy. Which strategy is more likely to result in a higher market share?
A. Push strategy
B. Pull strategy
C. Both strategies are equally effective
D. Neither strategy is effective
Question 15
A company is considering two investment options: Option A, which has a 10% annual return, and Option B, which has a 15% annual return. However, Option B also has a 20% chance of defaulting. What is the expected return on investment for Option B?
A. 12%
B. 15%
C. 18%
D. 20%

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