POST UTME AL-HIKMAH UNIVERSITY 2020 Commerce | Objective

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Question 1
A company's cost function is given by C = 2L + 3K, where C is total cost, L is labor, and K is capital. If the firm's labor and capital are 10 and 5 respectively, what is the total cost?
A. 50
B. 60
C. 70
D. 80
Question 2
A consumer protection agency has received a complaint from a customer who purchased a defective product from a retailer. The product was sold with a one-year warranty, but the customer claims that the product failed after only six months of use. The retailer argues that the warranty period has not expired and therefore is not liable for the defect. Which of the following legal principles is most relevant to this situation?
A. The doctrine of caveat emptor
B. The principle of privity of contract
C. The concept of implied warranty of merchantability
D. The doctrine of strict liability
Question 3
A firm produces two products, X and Y. The production process for X requires 2 hours of labor and 3 units of raw material, while the production process for Y requires 3 hours of labor and 2 units of raw material. If the firm has 120 hours of labor available and 180 units of raw material available, how many units of product X and product Y should the firm produce to maximize profit?
A. X = 30, Y = 40
B. X = 40, Y = 30
C. X = 50, Y = 20
D. X = 20, Y = 50
Question 4
In a sole trader business, what is the primary advantage of using a cash book over a sales journal?
A. It provides a detailed record of all cash transactions.
B. It allows for the easy identification of cash and credit transactions.
C. It facilitates the preparation of a trial balance.
D. It enables the calculation of the cash balance at any given time.
Question 5
A company has two branches, A and B. Branch A has a profit of ₦500,000 and a loss of ₦200,000, while Branch B has a profit of ₦300,000 and a loss of ₦100,000. If the company's overall profit is ₦200,000, what is the profit of Branch A?
A. ₦700,000
B. ₦600,000
C. ₦500,000
D. ₦400,000
Question 6
A company is considering two different types of business units to organize its operations. Unit A is a sole proprietorship, while Unit B is a partnership. What is the primary advantage of Unit B?
A. Increased flexibility
B. Improved decision-making
C. Enhanced financial resources
D. Reduced liability
Question 7
A company is considering the use of a new trade agreement to increase its exports. The company has evaluated the costs and benefits of using a free trade agreement, a preferential trade agreement, and a reciprocal trade agreement. Which of the following trade agreements is most likely to provide the highest level of protection for the company's exports?
A. Free trade agreement
B. Preferential trade agreement
C. Reciprocal trade agreement
D. Most-favored-nation (MFN) agreement
Question 8
A firm specializes in producing only one product. This specialization is an example of which of the following production concepts?
A. Economies of scale
B. Division of labor
C. Product differentiation
D. Vertical integration
Question 9
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm's labor and capital are 16 and 9 respectively, what is the output?
A. 64
B. 32
C. 16
D. 8
Question 10
A company's profit function is given by P = R - C, where P is profit, R is revenue, and C is total cost. If the firm's revenue is 100 and total cost is 50, what is the profit?
A. 50
B. 75
C. 100
D. 125
Question 11
A firm's revenue function is given by R = 2Q^2, where R is revenue and Q is output. If the firm's output is 4, what is the revenue?
A. 32
B. 64
C. 128
D. 256
Question 12
A company specializes in producing a single product, which is a type of electronic component. The production process involves several stages, including design, prototyping, testing, and packaging. The company uses a just-in-time (JIT) inventory system to manage its stock levels. What is the primary advantage of using a JIT inventory system in this context?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 13
A company is considering the use of a new transportation mode to reduce its logistics costs. The company has evaluated the costs and benefits of using a private fleet, a third-party logistics provider, and a public transportation mode. Which of the following transportation modes is most likely to provide the lowest cost per unit of goods transported?
A. Private fleet
B. Third-party logistics provider
C. Public transportation mode
D. Intermodal transportation
Question 14
A company has a fleet of 10 trucks, each with a capacity of 5 tons. If the company receives an order for 50 tons of goods, what is the minimum number of trucks required to fulfill the order?
A. 5 trucks
B. 6 trucks
C. 7 trucks
D. 8 trucks
Question 15
A firm has two products, X and Y. The production process for X requires 2 hours of labor and 3 units of raw material, while the production process for Y requires 3 hours of labor and 2 units of raw material. If the firm has 120 hours of labor available and 180 units of raw material available, and the selling price per unit of product X is ₦500 and the selling price per unit of product Y is ₦600, how many units of product X and product Y should the firm produce to maximize revenue?
A. X = 30, Y = 40
B. X = 40, Y = 30
C. X = 50, Y = 20
D. X = 20, Y = 50

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