POST UTME ELIZADE UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's cost function is given by C = 100 + 2L + 3K, where C is the total cost, L is the labor input, and K is the capital input. If the firm's labor input is increased by 10% and the capital input remains constant, what is the percentage change in the total cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 2
A consumer protection agency has received complaints about a company's misleading advertising practices. Which of the following is a potential consequence of this behavior?
A. Financial penalties
B. Reputation damage
C. Loss of business licenses
D. All of the above
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input is increased by 20% and the capital input remains constant, what is the percentage change in the quantity produced?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A firm is considering expanding its operations into a new market. The firm has conducted a market analysis and determined that the new market has a high growth potential. However, the firm is concerned about the high level of competition in the new market. Which of the following is a correct statement regarding the firm's decision?
A. The firm should expand its operations into the new market because of its high growth potential.
B. The firm should not expand its operations into the new market because of the high level of competition.
C. The firm should conduct further market research to determine the feasibility of expanding into the new market.
D. The firm should consider partnering with a local firm to reduce the level of competition.
Question 5
A company has a capital structure consisting of 60% equity and 40% debt. If the company's cost of equity is 12% and the cost of debt is 8%, what is the company's weighted average cost of capital (WACC)?
A. 9.6%
B. 10.4%
C. 11.2%
D. 12.0%
Question 6
A company has a portfolio of assets with a beta of 1.2. If the market risk premium is 5% and the risk-free rate is 2%, what is the expected return on the portfolio?
A. 4.4%
B. 5.2%
C. 6.0%
D. 6.8%
Question 7
A business owner seeks to minimize risk by diversifying their investments. Which of the following is a type of risk management strategy?
A. Diversification
B. Hedging
C. Speculation
D. Arbitrage
Question 8
The marketing mix for a product can be modified to suit the needs of a specific target market. Which of the following is NOT a part of the marketing mix?
A. Product
B. Price
C. Promotion
D. Place
Question 9
A consumer is considering purchasing a product from a company that has a reputation for producing high-quality products. Which of the following is a factor that influences the consumer's decision?
A. Price
B. Quality
C. Brand recognition
D. Location
Question 10
A company is considering exporting its products to a foreign market. Which of the following is a major advantage of exporting?
A. Increased market share
B. Reduced competition
C. Access to new markets and customers
D. Lower production costs
Question 11
A company's marketing strategy involves creating a sense of urgency among its customers. This is an example of which of the following marketing tactics?
A. Scarcity
B. Exclusivity
C. Social Proof
D. Liking
Question 12
A sole trader has decided to expand their business by hiring additional staff. Which of the following is a key consideration for this decision?
A. Increased revenue
B. Improved productivity
C. Enhanced customer service
D. Additional financial risks
Question 13
A company produces a product that is subject to a patent. Which of the following is a type of patent?
A. Utility patent
B. Design patent
C. Plant patent
D. Reissue patent
Question 14
A firm's supply function is given by the equation ( P = 50 + 2Q ), where P is the price and Q is the quantity supplied. If the firm wants to increase its revenue by 20%, how much should it increase its price?
A. ₦10
B. ₦20
C. ₦30
D. ₦50
Question 15
A consumer purchases a product online, but upon delivery, finds that it is damaged. The consumer seeks redress from the seller, citing the Consumer Protection Act. Which of the following is a fundamental principle of consumer protection?
A. The right to choose
B. The right to safety
C. The right to be heard
D. The right to information

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