POST UTME AL-HIKMAH UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank has a reserve requirement of 10% and a cash reserve of ₦1,000,000. If the bank's total deposits are ₦10,000,000, what is the bank's required reserve?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 2
A company's memorandum of association may provide for the issue of debentures. What is the primary characteristic of debentures?
A. They are a type of loan
B. They are a type of share
C. They are a type of preference share
D. They are a type of ordinary share
Question 3
A sole trader has a business income of ₦1,500,000 and a business expense of ₦800,000. What is the sole trader's profit before tax?
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 4
A firm is considering expanding its product line to include a new product. The new product has a higher price elasticity of demand than the firm's existing products. What is the implication of this for the firm's pricing strategy?
A. The firm should increase the price of the new product.
B. The firm should decrease the price of the new product.
C. The firm should maintain the same price for the new product.
D. The firm should consider the price elasticity of demand for the new product when setting its price.
Question 5
A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are the prices of two goods, Q1 and Q2 are the quantities of the two goods consumed, and I is the consumer's income. If the consumer's income is 100, the price of good 1 is 5, and the price of good 2 is 10, then the consumer's budget line will have a slope of
A. -0.5
B. -1
C. -2
D. -5
Question 6
A company's inventory management system uses the Economic Order Quantity (EOQ) model to determine the optimal order quantity. The EOQ model is given by the formula: EOQ = √(2DS/H), where D is the annual demand, S is the ordering cost, and H is the holding cost. If the annual demand is 10,000 units, the ordering cost is ₦50 per order, and the holding cost is ₦5 per unit per year, what is the optimal order quantity?
A. 1,000 units
B. 5,000 units
C. 10,000 units
D. 20,000 units
Question 7
A firm's cost function is given by C(Q) = 10Q + 100. If the firm's current output level is Q = 5, then the firm's current total cost will be
A. 150
B. 200
C. 250
D. 300
Question 8
A company's marketing strategy involves creating a new product line. The company has a fixed cost of ₦500,000 and a variable cost of ₦200 per unit. If the selling price of each unit is ₦300, what is the break-even point in units?
A. 1000 units
B. 2000 units
C. 5000 units
D. 10,000 units
Question 9
A company's memorandum of association may provide for the issue of preference shares. What is the primary characteristic of preference shares?
A. They have a fixed dividend rate
B. They have a voting right
C. They have a priority claim on assets
D. They are redeemable at the option of the company
Question 10
A company has a production cost of ₦500 per unit and a selling price of ₦700 per unit. If the company produces 5,000 units, what is the company's total revenue?
A. ₦3,500,000
B. ₦4,000,000
C. ₦4,500,000
D. ₦5,000,000
Question 11
A company has a production capacity of 10,000 units per day. If the company operates for 20 days, what is the total production?
A. 100,000 units
B. 200,000 units
C. 500,000 units
D. 1,000,000 units
Question 12
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to increase its output by 20%, what percentage increase in labor and capital is required?
A. 10% increase in labor and 10% increase in capital.
B. 20% increase in labor and 20% increase in capital.
C. 30% increase in labor and 30% increase in capital.
D. 40% increase in labor and 40% increase in capital.
Question 13
A firm has a warehouse with a capacity of 500 units. The firm receives a shipment of 300 units. What is the remaining capacity of the warehouse?
A. 500
B. 300
C. 200
D. 0
Question 14
A firm is considering using a new marketing strategy to increase sales. The new strategy involves offering a discount to customers who purchase a certain product. What is the primary goal of this marketing strategy?
A. To increase the price of the product
B. To increase the quantity sold of the product
C. To increase the profit margin of the product
D. To decrease the marketing expenses of the product
Question 15
A company's balance sheet is given below. What is the company's total equity?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000

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