POST UTME ELIZADE UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's working capital is the difference between its
A. current assets and current liabilities
B. fixed assets and current liabilities
C. total assets and total liabilities
D. net income and total expenses
Question 2
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
C. To drive sales
D. To build customer loyalty
Question 3
A firm's financial leverage is the ratio of its
A. total debt to total equity
B. total assets to total liabilities
C. net income to total assets
D. total revenue to total expenses
Question 4
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 5
A firm's break-even point is the point at which its total revenue equals its
A. total fixed costs
B. total variable costs
C. total costs
D. net income
Question 6
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.
D. The firm should choose Technology B because it has a higher level of productivity.
Question 7
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?
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.
Question 8
A company's memorandum of association is a document that outlines the
A. Objectives of the company
B. Structure of the company
C. Relationship between the company and its shareholders
D. Relationship between the company and its employees
Question 9
A company's articles of association is a document that outlines the
A. Objectives of the company
B. Structure of the company
C. Relationship between the company and its shareholders
D. Relationship between the company and its employees
Question 10
A company uses a marketing mix strategy to promote its products. Which of the following is a component of the marketing mix?
A. Product
B. Price
C. Promotion
D. All of the above
Question 11
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.
Question 12
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%
B. 12%
C. 15%
D. 18%
Question 13
A consumer protection agency is investigating a complaint about a company's advertising practices. Which of the following is a key consideration for the agency?
A. Truthfulness and accuracy of advertising claims
B. Fairness and transparency of business practices
C. Compliance with relevant laws and regulations
D. Impact on consumer behavior and decision-making
Question 14
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
B. Private Goods
C. Merchandise
D. Services
Question 15
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to produce 16 units of output, and it has 4 units of capital, how many units of labor should it hire?
A. 4
B. 8
C. 16
D. 32

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