POST UTME AL-HIKMAH UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A warehouse has a storage capacity of 10,000 units. If it currently has 8,000 units stored, what is the maximum number of units it can store?
A. 2,000
B. 5,000
C. 8,000
D. 10,000
Question 2
A company's articles of association are a document that outlines the rules and regulations of the company. Which of the following is NOT a part of the articles of association?
A. Objects of the company
B. Management structure
C. Share capital
D. Directors' remuneration
Question 3
A consumer's utility function is given by u(x, y) = xy. If the consumer's initial endowment is (x0, y0) = (10, 20), and the price of good x is ₦5, what is the consumer's optimal bundle?
A. ₦30, 10 units of x and 20 units of y
B. ₦40, 15 units of x and 30 units of y
C. ₦50, 20 units of x and 40 units of y
D. ₦60, 25 units of x and 50 units of y
Question 4
A consumer protection agency receives a complaint about a company's unfair business practices. The agency's first step is to?
A. Investigate the complaint
B. Issue a warning to the company
C. File a lawsuit against the company
D. Dismiss the complaint
Question 5
A firm's cost function is given by C(Q) = 100 + 2Q^2. If the firm produces Q = 10 units, what is the firm's total cost?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 6
A firm's revenue function is given by R(Q) = 100Q. If the firm sells Q = 10 units, what is the firm's total revenue?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000
Question 7
A firm is considering two different production processes for its new product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦100 per unit, which process would result in the highest profit?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 8
A company's profit function is given by P(x) = 20x - 5x^2. If the company produces 15 units, what is the profit?
A. 150
B. 200
C. 250
D. 300
Question 9
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. become elastic
Question 10
A firm's revenue function is given by R(x) = 10x - 2x^2. If the firm produces 10 units, what is the marginal revenue?
A. 8
B. 10
C. 12
D. 14
Question 11
A firm's financial statements show that its total assets have increased by 25% over the past year, while its total liabilities have increased by 15%. If the firm's equity has increased by 10%, what is the ratio of its total assets to total liabilities?
A. 1.5
B. 1.75
C. 2.0
D. 2.25
Question 12
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦10,000,000, how much cash must it reserve?
A. ₦2,000,000
B. ₦1,500,000
C. ₦2,500,000
D. ₦1,000,000
Question 13
A bank is a financial institution that provides a range of financial services to its customers. Which of the following is a type of bank?
A. Commercial bank
B. Investment bank
C. Central bank
D. All of the above
Question 14
A company's sole trader is considering the introduction of a new product line. The product line requires an initial investment of ₦1,500,000 and is expected to generate an annual profit of ₦750,000. If the company's cost of capital is 12% per annum, what is the expected rate of return on investment (ROI) for the new product line?
A. 15%
B. 18%
C. 20%
D. 22%
Question 15
A firm's financial statements show that its total assets have increased by 25% over the past year, while its total liabilities have increased by 15%. If the firm's equity has increased by 10%, what is the ratio of its total assets to total liabilities?
A. 1.5
B. 1.75
C. 2.0
D. 2.25

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