POST UTME ABU 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a sole proprietorship business structure. What is the primary advantage of this business structure?
A. Easy to set up
B. Limited liability
C. Unlimited liability
D. Tax benefits
Question 2
A company produces two products, A and B. Product A requires 2 hours of labor and 3 units of raw material, while product B requires 3 hours of labor and 2 units of raw material. If the company has 12 hours of labor and 15 units of raw material available, how many units of product A can be produced?
A. 3
B. 4
C. 5
D. 6
Question 3
A company's marketing strategy involves creating a brand identity that appeals to a specific demographic. Which of the following is a characteristic of this demographic?
A. Young adults aged 18-35
B. Middle-aged adults aged 45-60
C. Retirees aged 65 and above
D. Children under the age of 18
Question 4
A company's insurance policy covers losses due to fire, theft, and natural disasters. If the company's annual premium is ₦1.5 million and it experiences a loss of ₦2.8 million due to a fire, what is the company's deductible?
A. ₦500,000
B. ₦750,000
C. ₦1.0 million
D. ₦1.2 million
Question 5
A firm's revenue function is given by R(x) = 2x^2 + 5x - 3, where x is the number of units sold. If the firm sells 10 units, what is the marginal revenue?
A. 29
B. 31
C. 33
D. 35
Question 6
A firm is producing a good using two inputs, labor and capital. The production function for the good is given by Q = 2L^0.5K^0.5, where Q is the quantity of the good produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 200 units of capital, what is the quantity of the good produced?
A. 50
B. 100
C. 200
D. 300
Question 7
A company is considering two different warehouse locations for its new distribution center. Location A has a higher initial investment cost but lower operating costs, while Location B has a lower initial investment cost but higher operating costs. Which of the following is a correct statement about the decision-making process for this company?
A. The company should choose Location A because it has a higher initial investment cost
B. The company should choose Location B because it has a lower initial investment cost
C. The company should choose Location A because it has lower operating costs
D. The company should choose Location B because it has higher operating costs
Question 8
A firm specializes in producing only one product. This specialization leads to economies of scale in production. However, it also means that the firm is vulnerable to fluctuations in demand for that product. What is the name of this phenomenon?
A. Risk
B. Uncertainty
C. Economies of scale
D. Diversification
Question 9
A company has two warehouses, A and B, located 100 km apart. Warehouse A has a stock of 500 units of a product, while warehouse B has a stock of 300 units. If the company wants to transfer 100 units from warehouse A to warehouse B, and the transportation cost is ₦10 per km, what is the total cost of transportation?
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 10
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are not protected in case of business debts. What is the primary reason for this lack of protection?
A. The sole trader's business is not registered as a separate entity.
B. The sole trader's personal assets are not separate from the business assets.
C. The sole trader's business is not insured against debts.
D. The sole trader's business is not a limited liability company.
Question 11
A firm's production function is given by Q = 2L^0.5K^0.25, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A firm is producing two goods, X and Y, using two inputs, labor and capital. The production function for good X is given by Q_X = 2L^0.5K^0.5, where Q_X is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. The production function for good Y is given by Q_Y = 3L^0.2K^0.8, where Q_Y is the quantity of good Y produced. If the firm uses 100 units of labor and 200 units of capital, how many units of good X and good Y will the firm produce?
A. Q_X = 100, Q_Y = 200
B. Q_X = 200, Q_Y = 100
C. Q_X = 50, Q_Y = 150
D. Q_X = 150, Q_Y = 50
Question 13
A company has a production process that involves the use of a machine that can produce 100 units of a product per hour. If the company wants to produce 500 units of the product, and the machine is available for 5 hours, what is the probability that the production process will be completed within the specified time?
A. 0.8
B. 0.9
C. 0.95
D. 0.99
Question 14
A company has a business insurance policy that covers losses due to fire, theft, and natural disasters. What type of insurance policy is this?
A. Liability insurance
B. Property insurance
C. Casualty insurance
D. Workers' compensation insurance
Question 15
A company's production function is given by Q = 100L^0.5K^0.25, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%

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