POST UTME RSU 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering a new marketing strategy to increase sales. The firm's current market share is 20% and the industry growth rate is 5%. Using the market share equation, find the firm's new market share after one year.
A. 25%
B. 30%
C. 35%
D. 40%
Question 2
A firm has a budget of ₦500,000 to spend on transportation. If the cost of transportation by road is ₦150,000 per kilometer and the cost of transportation by air is ₦200,000 per kilometer, how many kilometers can the firm transport by road if it spends 80% of its budget on road transportation?
A. 100 kilometers
B. 120 kilometers
C. 150 kilometers
D. 180 kilometers
Question 3
A company has a share capital of ₦5 million, divided into 500,000 ordinary shares of ₦10 each. If the company issues 200,000 shares to the public, what is the amount of share capital raised?
A. ₦1 million
B. ₦2 million
C. ₦3 million
D. ₦4 million
Question 4
A company's production function is given by the Cobb-Douglas production function: Q = 10L^0.4K^0.6, where Q is the output, L is labor, and K is capital. If the company wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 5
A company has a warehouse with a capacity of 10,000 units. If it receives a shipment of 5,000 units, what is the percentage of the warehouse that is occupied?
A. 50%
B. 60%
C. 70%
D. 80%
Question 6
A company has a warehouse with a capacity of 10,000 units. If the company receives a shipment of 8,000 units, what is the percentage of the warehouse capacity utilized?
A. 50%
B. 60%
C. 70%
D. 80%
Question 7
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 150 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
Question 8
A company has a budget of ₦1,000,000 to spend on advertising. If the cost of advertising on TV is ₦200,000 per minute and the cost of advertising on radio is ₦150,000 per minute, how many minutes of TV advertising can the company afford if it spends 60% of its budget on TV advertising?
A. 100 minutes
B. 120 minutes
C. 150 minutes
D. 180 minutes
Question 9
A firm imports goods from a foreign country. If the exchange rate is 1 USD = 360 Naira and the cost of the goods is 100, what is the total cost of the goods in Naira?
A. ₦36,000
B. ₦36,000
C. ₦36,000
D. ₦36,000
Question 10
A company's stock control system uses a first-in-first-out (FIFO) inventory method. What is the main advantage of this method?
A. It minimizes stockouts
B. It maximizes profits
C. It reduces inventory costs
D. It ensures accurate inventory valuation
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. 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, how much should the firm spend on labor?
A. ₦5000
B. ₦10000
C. ₦20000
D. ₦50000
Question 12
A company's marketing mix can be described by the 4 Ps. What does the 'P' stand for in the 'Pricing' component?
A. Product
B. Place
C. Promotion
D. Price
Question 13
A person has invested in a business venture. What is the main risk associated with this investment?
A. The risk of loss of capital
B. The risk of inflation
C. The risk of market fluctuations
D. The risk of government regulations
Question 14
In a perfectly competitive market, the supply curve is determined by the marginal cost curve. True or False?
A. True
B. False
C. Depends on the market structure
D. Marginal revenue curve is more relevant
Question 15
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy setup and registration
C. Flexibility in decision-making
D. Access to capital markets

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