POST UTME ELIZADE UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's marketing strategy involves creating a new product line. Which of the following is a characteristic of this strategy?
A. It involves creating a new product line that is similar to an existing product.
B. It involves creating a new product line that is different from an existing product.
C. It involves creating a new product line that is a variation of an existing product.
D. It involves creating a new product line that is a replacement for an existing product.
Question 2
A company's warehouse is experiencing stockouts due to inadequate inventory management. Which of the following is a key cause of stockouts?
A. Inadequate forecasting
B. Insufficient storage capacity
C. Poor inventory control
D. Inefficient supply chain management
Question 3
A financial institution's ability to manage risk is known as _______ management.
A. Risk Management
B. Asset Management
C. Liability Management
D. Capital Management
Question 4
A firm's marketing strategy involves using social media platforms to reach its target audience. What type of marketing is this firm employing?
A. Digital marketing
B. Experiential marketing
C. Event marketing
D. Public relations
Question 5
A firm's cost function is given by the equation C(x) = 100 + 2x^2, where x is the number of units produced. What is the marginal cost when x = 5?
A. 20
B. 40
C. 60
D. 80
Question 6
A firm specializes in producing a single product, which is a combination of two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor, and K is the amount of capital. If the firm wants to produce 16 units of the product, and the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the minimum cost of production?
A. ₦4000
B. ₦8000
C. ₦12000
D. ₦16000
Question 7
A company purchases a machine for ₦1,500,000 and depreciates it using the straight-line method over a 5-year period. What is the annual depreciation expense?
A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000
Question 8
In a sole trade business, the owner's personal and business finances are not separated. What is the primary advantage of this arrangement?
A. Separation of personal and business finances
B. Increased tax liability
C. Reduced administrative costs
D. Improved business credit rating
Question 9
A firm's insurance policy covers losses due to natural disasters. What type of insurance is this firm purchasing?
A. Liability insurance
B. Property insurance
C. Business interruption insurance
D. Workers' compensation insurance
Question 10
The Consumer Protection Act of 1999 provides that a consumer has the right to _______ a defective product.
A. Return
B. Exchange
C. Refund
D. Repair
Question 11
A financial institution's ability to generate profits through the sale of financial products is known as _______ income.
A. Net Interest Income
B. Non-Interest Income
C. Trading Income
D. Investment Income
Question 12
A consumer protection agency is responsible for enforcing consumer rights. Which of the following is a right that consumers have?
A. The right to return a product that is defective.
B. The right to cancel a contract within a specified period.
C. The right to claim compensation for damages caused by a product.
D. The right to access information about a product before purchasing it.
Question 13
A company's insurance policy has a deductible of ₦50,000 and a maximum payout of ₦200,000. If the company suffers a loss of ₦300,000, what is the insurance company's liability?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 14
A firm is considering two different warehousing strategies for its products. Strategy A involves a high level of inventory turnover, while Strategy B involves a low level of inventory turnover. The firm's logistics manager estimates that Strategy A will result in a 20% increase in costs, while Strategy B will result in a 10% increase in costs. However, Strategy A will also result in a 5% increase in sales, while Strategy B will result in a 2% increase in sales. What is the net benefit of Strategy A compared to Strategy B?
A. 0.5%
B. 1%
C. 1.5%
D. 2%
Question 15
A company has the following income statement: Revenue = ₦200m, Cost of Goods Sold = ₦150m, Operating Expenses = ₦20m. What is the company's net income?
A. ₦30m
B. ₦40m
C. ₦50m
D. ₦60m

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