Practice post utme elizade university commerce 2023 Past Questions

Question 1

In a perfectly competitive market, the demand curve for a firm's product is its

Correct A. marginal revenue curve

B. marginal cost curve

C. average revenue curve

D. average cost curve

Correct Answer: A

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Question 2

A firm's break-even point is the point at which its total revenue equals its

A. total fixed costs

B. total variable costs

Correct C. total costs

D. net income

Correct Answer: C

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Question 3

A firm's marketing mix consists of the

Correct A. 4 Ps: product, price, promotion, and place

B. 3 Ps: product, price, and promotion

C. 2 Ps: product and price

D. 1 P: product

Correct Answer: A

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Question 4

A firm's financial leverage is the ratio of its

Correct A. total debt to total equity

B. total assets to total liabilities

C. net income to total assets

D. total revenue to total expenses

Correct Answer: A

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Question 5

A firm's working capital is the difference between its

Correct A. current assets and current liabilities

B. fixed assets and current liabilities

C. total assets and total liabilities

D. net income and total expenses

Correct Answer: A

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Question 6

A company's production process involves the use of a just-in-time inventory system. The system relies on a continuous flow of materials and information to produce goods. What is the primary advantage of this system?

Correct A. Reduced inventory costs

B. Improved quality control

C. Increased flexibility in production

D. Enhanced customer satisfaction

Correct Answer: A

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Question 7

A firm is considering the introduction of a new product line. The product requires a significant investment in marketing and advertising. What is the primary goal of this investment?

A. To increase brand awareness

B. To generate leads

Correct C. To drive sales

D. To build customer loyalty

Correct Answer: C

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Question 8

A bank is considering the introduction of a new loan product. The product requires a significant investment in marketing and advertising. What is the primary goal of this investment?

A. To increase brand awareness

B. To generate leads

Correct C. To drive sales

D. To build customer loyalty

Correct Answer: C

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Question 9

A company is considering the use of a warehouse management system. The system requires a significant investment in hardware and software. What is the primary benefit of this investment?

Correct A. Improved inventory management

B. Increased efficiency

C. Reduced costs

D. Enhanced customer satisfaction

Correct Answer: A

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Question 10

A firm is considering the introduction of a new product line. The product requires a significant investment in production and logistics. What is the primary goal of this investment?

A. To increase brand awareness

B. To generate leads

Correct C. To drive sales

D. To build customer loyalty

Correct Answer: C

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Question 11

The concept of 'Gross Domestic Product' (GDP) is used to measure the total value of all final goods and services produced within a country's borders. However, GDP does not account for the value of unpaid household work, such as childcare and household chores. What is the name of the alternative measure of a country's economic activity that takes into account the value of unpaid household work?

A. Gross National Product (GNP)

B. Net Domestic Product (NDP)

Correct C. Human Development Index (HDI)

D. Gross National Income (GNI)

Correct Answer: C

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Question 12

A company is considering two different marketing strategies for 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 of the following is a potential advantage of Strategy A?

Correct A. Increased brand awareness

B. Reduced production costs

C. Improved customer loyalty

D. Enhanced product quality

Correct Answer: A

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Question 13

A firm is considering investing in a new project that has a net present value (NPV) of ₦1,500,000. The required rate of return on the project is 12%. What is the internal rate of return (IRR) of the project?

A. 10%

Correct B. 12%

C. 15%

D. 18%

Correct Answer: B

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Question 14

A company is considering two different modes of transportation for its goods: road and rail. Which of the following is a potential advantage of rail transportation?

A. Lower transportation costs

B. Faster delivery times

C. Increased security

Correct D. Reduced environmental impact

Correct Answer: D

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Question 15

A firm is considering investing in a new project that has a payback period of 3 years. The required rate of return on the project is 15%. What is the net present value (NPV) of the project?

A. ₦500,000

B. ₦1,000,000

Correct C. ₦1,500,000

D. ₦2,000,000

Correct Answer: C

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Question 16

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing marginal opportunity costs. However, this is not the case in a perfectly competitive market with a fixed supply of resources. Instead, the supply curve is horizontal because of the law of diminishing marginal returns. Which of the following is a correct statement about the law of diminishing marginal returns?

Correct A. The law of diminishing marginal returns states that as the quantity of a variable input increases, the marginal product of that input decreases.

B. The law of diminishing marginal returns states that as the quantity of a variable input increases, the marginal product of that input increases.

C. The law of diminishing marginal returns states that as the quantity of a variable input increases, the marginal product of that input remains constant.

D. The law of diminishing marginal returns states that as the quantity of a variable input increases, the marginal product of that input decreases and then increases.

Correct Answer: A

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Question 17

A company is considering two different investment projects. Project A has a higher expected return but also a higher level of risk. Project B has a lower expected return but also a lower level of risk. Which of the following is a correct statement about the risk-return tradeoff?

A. Higher expected returns are always associated with higher levels of risk.

B. Lower expected returns are always associated with lower levels of risk.

Correct C. There is a direct tradeoff between expected returns and risk.

D. There is no tradeoff between expected returns and risk.

Correct Answer: C

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Question 18

A firm is considering two different production technologies. Technology A is more capital-intensive and has a higher level of productivity. Technology B is more labor-intensive and has a lower level of productivity. Which of the following is a correct statement about the choice between these two technologies?

A. The firm should choose Technology A because it has a higher level of productivity.

B. The firm should choose Technology B because it is more labor-intensive.

Correct C. The firm should choose Technology A because it is more capital-intensive.

D. The firm should choose Technology B because it has a lower level of productivity.

Correct Answer: C

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Question 19

A firm is considering two different inventory management strategies. Strategy A involves holding a large inventory of raw materials and finished goods. Strategy B involves holding a small inventory of raw materials and finished goods. Which of the following is a correct statement about the choice between these two strategies?

A. The firm should choose Strategy A because it involves holding a large inventory of raw materials and finished goods.

B. The firm should choose Strategy B because it involves holding a small inventory of raw materials and finished goods.

C. The firm should choose Strategy A because it reduces the risk of stockouts.

Correct D. The firm should choose Strategy B because it reduces the risk of overstocking.

Correct Answer: D

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Question 20

A consumer is considering two different brands of a product. Brand A is more expensive but has a higher level of quality. Brand B is less expensive but has a lower level of quality. Which of the following is a correct statement about the consumer's decision?

Correct A. The consumer should choose Brand A because it has a higher level of quality.

B. The consumer should choose Brand B because it is less expensive.

C. The consumer should choose Brand A because it is more expensive.

D. The consumer should choose Brand B because it has a lower level of quality.

Correct Answer: A

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Question 21

A firm is considering two different marketing strategies. Strategy A involves targeting a niche market with a high level of demand. Strategy B involves targeting a mass market with a low level of demand. Which of the following is a correct statement about the choice between these two strategies?

Correct A. The firm should choose Strategy A because it involves targeting a niche market with a high level of demand.

B. The firm should choose Strategy B because it involves targeting a mass market with a low level of demand.

C. The firm should choose Strategy A because it reduces the risk of market saturation.

D. The firm should choose Strategy B because it reduces the risk of market fragmentation.

Correct Answer: A

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Question 22

A firm is considering two different production technologies. Technology A is more labor-intensive and has a lower level of productivity. Technology B is more capital-intensive and has a higher level of productivity. Which of the following is a correct statement about the choice between these two technologies?

A. The firm should choose Technology A because it is more labor-intensive.

B. The firm should choose Technology B because it is more capital-intensive.

C. The firm should choose Technology A because it has a lower level of productivity.

Correct D. The firm should choose Technology B because it has a higher level of productivity.

Correct Answer: D

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Question 23

A firm is considering two different inventory management strategies. Strategy A involves holding a large inventory of raw materials and finished goods. Strategy B involves holding a small inventory of raw materials and finished goods. Which of the following is a correct statement about the choice between these two strategies?

A. The firm should choose Strategy A because it involves holding a large inventory of raw materials and finished goods.

B. The firm should choose Strategy B because it involves holding a small inventory of raw materials and finished goods.

C. The firm should choose Strategy A because it reduces the risk of stockouts.

D. The firm should choose Strategy B because it reduces the risk of overstocking.

Correct Answer: VIEW ANSWER

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Question 24

In a perfectly competitive market, the law of diminishing marginal utility is most relevant to the production of which of the following goods?

A. Public Goods

Correct B. Private Goods

C. Merchandise

D. Services

Correct Answer: B

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Question 25

A company's sole trader is responsible for the payment of which of the following taxes?

A. Value Added Tax (VAT)

B. Pay As You Earn (PAYE)

Correct C. National Insurance Contributions (NIC)

D. Capital Gains Tax (CGT)

Correct Answer: C

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POST UTME ELIZADE UNIVERSITY 2023 Commerce | Objective

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