POST UTME MADONNA UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering exporting its products to a foreign market. The company has a high level of expertise in the product and a low level of expertise in the foreign market. Which of the following strategies would be most appropriate for the company?
A. Exporting
B. Licensing
C. Franchising
D. Joint venture
Question 2
A company's marketing strategy involves creating a new product line to appeal to a younger demographic. However, the product line is not successful, and the company incurs a significant loss. Which of the following marketing strategies is most likely to be responsible for this failure?
A. Market segmentation
B. Product differentiation
C. Target marketing
D. Positioning
Question 3
A company is considering exporting its products to a foreign market. The company has a high level of expertise in the product and a low level of expertise in the foreign market. Which of the following strategies would be most appropriate for the company?
A. Exporting
B. Licensing
C. Franchising
D. Joint venture
Question 4
A company exports goods to a foreign country. Which of the following is a type of foreign trade?
A. Import
B. Export
C. Domestic Trade
D. International Trade
Question 5
A company's Memorandum of Association is a document that contains the company's
A. Business Objectives
B. Share Capital Structure
C. Directors' Names and Addresses
D. All of the above
Question 6
A bank's cash reserve ratio is 10%. If the bank has a cash reserve of ₦1,000,000, what is the maximum amount of loans it can give out?
A. ₦9,000,000
B. ₦10,000,000
C. ₦11,000,000
D. ₦12,000,000
Question 7
A company uses a Just-In-Time (JIT) inventory management system to track stock levels. Which of the following is a benefit of using this method?
A. Reduced Stock Levels
B. Improved Stock Turnover
C. Increased Stock Obsolescence
D. Decreased Stock Turnover
Question 8
A company's marketing strategy involves creating a new product line. What is the primary goal of this strategy?
A. To increase sales revenue
B. To reduce production costs
C. To improve brand image
D. To enter new markets
Question 9
A firm is considering two investment projects, A and B. Project A has a 5-year payback period and an internal rate of return (IRR) of 15%. Project B has a 3-year payback period and an IRR of 20%. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive
Question 10
A bank offers a loan to a customer at an interest rate of 12% per annum. The loan is repayable in 5 years. What is the total interest paid by the customer over the 5-year period?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 11
A firm is considering exporting its product to a foreign market. The firm's export price is 100 per unit, and the foreign market demand is given by the equation: Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to sell 50 units of the product in the foreign market, what price should it charge?
A. 50
B. 75
C. 90
D. 100
Question 12
A foreign trade agreement between two countries involves the exchange of goods and services. However, one of the countries is not fulfilling its obligations under the agreement. What is the most likely consequence of this situation?
A. The agreement will be terminated
B. The non-compliant country will be fined
C. The compliant country will be rewarded
D. The agreement will be renegotiated
Question 13
A company produces two products, X and Y, using two machines, A and B. The production process for product X requires 2 hours on machine A and 3 hours on machine B. The production process for product Y requires 3 hours on machine A and 2 hours on machine B. If the company has 12 hours of machine A time and 15 hours of machine B time available, how many units of product X and product Y can be produced?
A. 10 units of X and 15 units of Y
B. 15 units of X and 10 units of Y
C. 20 units of X and 5 units of Y
D. 5 units of X and 20 units of Y
Question 14
A firm specializes in producing a single product, which is a type of commodity. The firm's production function is given by the equation: Q = 2L^0.5 * K^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 the commodity, and it has 16 units of labor and 25 units of capital available, how many units of labor should it hire?
A. 8
B. 10
C. 12
D. 16
Question 15
A bank's balance sheet shows a significant increase in its cash reserves. However, the bank's assets have decreased, and its liabilities have increased. What is the most likely explanation for this situation?
A. The bank has increased its lending activities
B. The bank has invested in low-risk securities
C. The bank has issued new shares
D. The bank has reduced its deposits

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