POST UTME GREENFIELD UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's insurance policy covers losses due to natural disasters. What is the primary benefit of having this type of coverage?
A. Reduced financial risk
B. Improved business continuity
C. Enhanced customer loyalty
D. Increased market share
Question 2
A firm has the following cost function: C(x) = 2x^2 + 10x + 100. If the firm produces 10 units, what is the total cost?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 3
A sole trader is considering the purchase of a new piece of equipment for ₦200,000. However, the equipment will have a useful life of 5 years and a residual value of ₦20,000. What is the annual depreciation of the equipment?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 4
A firm's marketing mix consists of four elements: product, price, promotion, and place. What is the primary purpose of the product element?
A. To create a unique selling proposition.
B. To differentiate the product from competitors.
C. To create a brand identity.
D. To establish a pricing strategy.
Question 5
A company's financial statements show a current ratio of 2:1. What does this indicate about the company's liquidity position?
A. The company has a high level of liquidity
B. The company has a low level of liquidity
C. The company's liquidity position is neutral
D. The company's liquidity position is uncertain
Question 6
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 wants to produce 100 units of output, and the wage rate is ₦100 per hour, and the rental rate of capital is ₦200 per hour, what is the optimal combination of labor and capital?
A. L = 100, K = 100
B. L = 50, K = 50
C. L = 200, K = 50
D. L = 50, K = 200
Question 7
A company has a marketing budget of ₦1,000,000. If the cost of advertising on social media is ₦200,000, what percentage of the marketing budget is allocated to social media advertising?
A. 20%
B. 30%
C. 40%
D. 50%
Question 8
A company has a sole trader business structure. What is the primary disadvantage of this structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. No tax benefits
Question 9
A company's financial statements show a net profit of ₦500,000. However, the company's tax liability is ₦150,000. What is the company's net cash flow from operating activities?
A. ₦350,000
B. ₦450,000
C. ₦550,000
D. ₦650,000
Question 10
A company has the following production function: 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 company wants to produce 100 units of output, and the wage rate is ₦100 per hour, and the rental rate of capital is ₦200 per hour, what is the optimal combination of labor and capital?
A. L = 100, K = 100
B. L = 50, K = 50
C. L = 200, K = 50
D. L = 50, K = 200
Question 11
A consumer purchases a product with a 2-year warranty. The product develops a fault after 18 months. Discuss the consumer's rights under the warranty, focusing on the concept of 'reasonable expectation'.
A. The consumer has no rights under the warranty, as the fault occurred outside the warranty period.
B. The consumer has some rights under the warranty, but only for the remaining 6 months.
C. The consumer has full rights under the warranty, as the fault occurred within the warranty period.
D. The consumer has no rights under the warranty, as the product was used excessively.
Question 12
A company's marketing strategy involves creating a brand identity that appeals to a specific demographic. Which of the following marketing mix elements would be most relevant to this approach?
A. Product
B. Price
C. Promotion
D. Place
Question 13
A company has the following budget constraint: 2x + 3y = 12, where x is the number of units of good X produced, and y is the number of units of good Y produced. If the company wants to produce 4 units of good X, what is the maximum number of units of good Y that can be produced?
A. 2
B. 4
C. 6
D. 8
Question 14
A firm's warehouse is designed to store a large quantity of goods. What is the primary benefit of using a first-in-first-out (FIFO) inventory management system in this scenario?
A. Reduced storage costs
B. Improved inventory turnover
C. Enhanced customer satisfaction
D. Increased product quality
Question 15
In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal revenue product of a firm. What is the consequence of this decrease on the firm's production level?
A. The firm will increase its production level to maximize profits.
B. The firm will decrease its production level to minimize losses.
C. The firm will maintain its current production level.
D. The firm will increase its production level to meet the increasing demand.

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