POST UTME SKYLINE UNIVERSITY 2017 Commerce | Objective

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Question 1
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. Which of the following is a characteristic of a USP?
Correct A. It is a statement that highlights the product's features and benefits
B. It is a statement that emphasizes the product's price and quality
C. It is a statement that focuses on the product's brand name and reputation
D. It is a statement that compares the product's features with those of competitors

Correct Answer: A

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Question 2
A bank's cash management system involves the use of a cash management software to track and manage its cash flows. Which of the following is a benefit of using such a system?
Correct A. Improved cash forecasting and planning
B. Enhanced customer service and satisfaction
C. Increased efficiency and productivity
D. Reduced costs and expenses

Correct Answer: A

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Question 3
A manufacturing firm produces two products, A and B, using two machines, M1 and M2. The production process involves the following costs: 100 for machine M1 and 200 for machine M2. The firm produces 100 units of product A and 50 units of product B. Using the data given, calculate the total cost of production.
A. 15,000
Correct B. 20,000
C. 25,000
D. 30,000

Correct Answer: B

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Question 4
A firm's export strategy involves the use of a trade agreement to reduce tariffs and other trade barriers. Which of the following is a benefit of using such a strategy?
Correct A. Increased market share and competitiveness
B. Improved customer service and satisfaction
C. Enhanced brand reputation and image
D. Reduced costs and expenses

Correct Answer: A

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Question 5
A firm's inventory management system involves the use of a just-in-time (JIT) inventory system to minimize inventory levels and costs. Which of the following is a benefit of using such a system?
A. Improved cash flow and liquidity
B. Enhanced customer service and satisfaction
Correct C. Reduced inventory levels and costs
D. Increased efficiency and productivity

Correct Answer: C

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Question 6
The concept of 'opportunity cost' in economics refers to the value of the next best alternative foregone as a result of making a decision. Which of the following is an example of opportunity cost?
A. The cost of producing a good
Correct B. The value of a good that is not produced
C. The cost of a good that is not consumed
D. The value of a good that is consumed

Correct Answer: B

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Question 7
A company has a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the company wants to produce 100 units, and the cost of labor is ₦100 per hour, and the cost of capital is ₦200 per unit, what is the minimum cost of production?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 8
A firm is considering two investment projects, A and B. Project A has a 20% chance of success and will generate ₦100,000 if it succeeds, while project B has a 30% chance of success and will generate ₦120,000 if it succeeds. What is the expected value of the two projects?
A. ₦24,000
B. ₦28,000
Correct C. ₦32,000
D. ₦36,000

Correct Answer: C

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Question 9
A company has a portfolio of assets with the following returns: 20% for asset A, 15% for asset B, and 10% for asset C. If the company has ₦100,000 invested in each asset, what is the expected return on the portfolio?
A. 15%
Correct B. 16%
C. 17%
D. 18%

Correct Answer: B

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Question 10
A firm is considering a new product launch. The product has a 30% chance of success, and if it succeeds, it will generate ₦500,000 in revenue. However, if it fails, it will incur a loss of ₦200,000. What is the expected value of the product launch?
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 11
A company's production function is given by the Cobb-Douglas production function: Q = 100K^(1/3)L^(2/3), where Q is the quantity produced, K is the capital and L is the labor. If the company wants to increase the quantity produced by 20% while keeping the capital and labor constant, what percentage increase in capital is required?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 12
A sole trader, Mr. A, has an annual income of ₦1,500,000. He has a business expense of ₦200,000 and a personal expense of ₦150,000. If he wants to save 20% of his income, how much will he save?
A. ₦300,000
Correct B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: B

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Question 13
A company's revenue function is given by R(x) = 2x^2 + 5x - 3, where x is the number of units sold. If the company wants to maximize its revenue, what is the value of x that will give the maximum revenue?
A. -1
Correct B. 1
C. 2
D. 3

Correct Answer: B

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Question 14
A company's cost function is given by C(x) = 2x^2 + 5x - 3, where x is the number of units produced. If the company wants to minimize its cost, what is the value of x that will give the minimum cost?
A. -1
Correct B. 1
C. 2
D. 3

Correct Answer: B

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Question 15
A company's profit function is given by P(x) = R(x) - C(x), where R(x) is the revenue function and C(x) is the cost function. If the company wants to maximize its profit, what is the value of x that will give the maximum profit?
A. -1
Correct B. 1
C. 2
D. 3

Correct Answer: B

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Question 16
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. It must be consistent with the company's overall business objectives.
B. It must be tailored to the specific needs of the target market.
Correct C. It must be implemented without any budget allocation.
D. It must be evaluated regularly to ensure its effectiveness.

Correct Answer: C

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Question 17
A sole trader's business is registered under the name 'XYZ Limited'. Which of the following is a consequence of this registration?
A. The business is now a partnership.
B. The business is now a private company.
C. The business is now a public company.
Correct D. The business is now a sole trader.

Correct Answer: D

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Question 18
A company's foreign trade involves importing goods from a foreign country. Which of the following is a benefit of this trade?
A. It allows the company to increase its market share.
Correct B. It allows the company to reduce its production costs.
C. It allows the company to increase its revenue.
D. It allows the company to reduce its debt.

Correct Answer: B

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Question 19
A company's insurance policy covers losses due to fire, theft, and natural disasters. Which of the following is a type of insurance policy?
A. Fire insurance policy.
B. Theft insurance policy.
C. Natural disaster insurance policy.
Correct D. All-risk insurance policy.

Correct Answer: D

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Question 20
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is a characteristic of a successful marketing strategy?
A. It must be consistent with the company's overall business objectives.
B. It must be tailored to the specific needs of the target market.
C. It must be implemented without any budget allocation.
Correct D. It must be evaluated regularly to ensure its effectiveness.

Correct Answer: D

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Question 21
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. average revenue curve
C. marginal cost curve
D. average cost curve

Correct Answer: A

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Question 22
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm wants to maximize its profit, what is the optimal value of L?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 23
A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are ₦50 and ₦75 respectively, and if the consumer's income is ₦1000, what is the optimal bundle of x and y?
A. x = 10, y = 5
Correct B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1

Correct Answer: B

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Question 24
A firm's cost function is given by C = 2L + 3K. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm wants to minimize its cost, what is the optimal value of L?
Correct A. 10
B. 20
C. 30
D. 40

Correct Answer: A

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Question 25
A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are ₦50 and ₦75 respectively, and if the consumer's income is ₦1000, what is the optimal bundle of x and y?
A. x = 10, y = 5
Correct B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1

Correct Answer: B

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