POST UTME CRAWFORD UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 8,000 units and then sells 2,000 units. What is the new stock level?
A. 8,000 units
B. 6,000 units
C. 10,000 units
D. 12,000 units
Question 2
A company has a fleet of 20 vehicles, including 10 trucks and 10 cars. If 5 vehicles are sold, what is the new ratio of trucks to cars?
A. 1:1
B. 2:1
C. 3:2
D. 4:3
Question 3
A firm's cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are 4 and 9 respectively, what is the firm's total cost?
A. 20
B. 30
C. 40
D. 50
Question 4
A company is considering two different storage options for its products. Option A costs ₦500 per unit and has a capacity of 1000 units, while Option B costs ₦300 per unit and has a capacity of 500 units. If the company needs to store 2000 units, which option should it choose?
A. Option A
B. Option B
C. Both options are equally expensive
D. Neither option is suitable
Question 5
A company is considering the importation of goods from a foreign country. What are the advantages of importing goods?
A. Access to new markets and customers
B. Reduced production costs
C. Increased competition
D. All of the above
Question 6
A company that specializes in producing high-quality, eco-friendly products is considering launching a new product line. The company has identified three potential products: a reusable water bottle, a set of bamboo toothbrushes, and a refillable coffee mug. Each product has a different production cost and market demand. The company wants to determine which product to launch first, considering the production costs and market demand. The production costs for each product are as follows: reusable water bottle (15), bamboo toothbrushes (5), and refillable coffee mug (10). The market demand for each product is as follows: reusable water bottle (100 units), bamboo toothbrushes (50 units), and refillable coffee mug (200 units).
A. Reusable water bottle
B. Bamboo toothbrushes
C. Refillable coffee mug
D. None of the above
Question 7
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. What is the minimum number of pallets required to fulfill the order?
A. 8
B. 10
C. 12
D. 15
Question 8
A firm's decision to produce a new product involves a trade-off between the costs of production and the potential profits. Which of the following is an example of a cost that the firm should consider when deciding whether to produce the new product?
A. Opportunity cost
B. Fixed cost
C. Variable cost
D. Sunk cost
Question 9
A firm is considering two different marketing strategies to promote its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which strategy should the firm choose if it expects to sell 1000 units?
A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is suitable
Question 10
A company is considering the establishment of a sole proprietorship business. What are the advantages of a sole proprietorship business?
A. Easy to establish and operate
B. Limited liability for the owner
C. Flexibility in management and decision-making
D. All of the above
Question 11
A firm is considering two different production technologies for its new product. Technology A involves a higher upfront cost of ₦500,000, but is expected to reduce production costs by 20% over the next 5 years. Technology B involves a lower upfront cost of ₦200,000, but is expected to reduce production costs by 10% over the next 5 years. What is the present value of the cost savings for each technology, assuming a discount rate of 10%?
A. Technology A has a higher present value of cost savings
B. Technology B has a higher present value of cost savings
C. Both technologies have the same present value of cost savings
D. Neither technology has a positive present value of cost savings
Question 12
A firm's production function is given by Q = 2L^0.4K^0.3, where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 100 units and 200 units, respectively, what is the marginal product of labor?
A. 0.8
B. 1.6
C. 2.4
D. 3.2
Question 13
A country's foreign trade balance is given by B = X - M, where B is balance, X is exports, and M is imports. If the country's current exports and imports are ₦500,000,000 and ₦700,000,000, respectively, what is the balance?
A. ₦-200,000,000
B. ₦100,000,000
C. ₦200,000,000
D. ₦300,000,000
Question 14
A company is considering the purchase of a new machine that will cost ₦1,500,000. The machine is expected to last for 5 years and will save the company ₦200,000 per year in operating costs. What is the net present value (NPV) of the machine, assuming a discount rate of 10%?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 15
A firm's production function is given by Q = 2L^0.4K^0.3, where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 100 units and 200 units, respectively, what is the marginal product of capital?
A. 0.6
B. 1.2
C. 1.8
D. 2.4

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