POST UTME AL-HIKMAH UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank's return on assets (ROA) is a measure of its ability to generate earnings from its assets. If a bank has an ROA of 0.02 and its total assets are ₦10 billion, what is its net income?
A. ₦200 million
B. ₦400 million
C. ₦600 million
D. ₦800 million
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20% while keeping the capital stock constant, what percentage increase in labor is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A firm's revenue is calculated as the product of the price per unit and the quantity sold. If the price per unit is ₦100 and the quantity sold is 50 units, what is the total revenue?
A. ₦4000
B. ₦5000
C. ₦6000
D. ₦7000
Question 4
A consumer has a budget constraint of 100 units of currency, and the prices of two goods are 5 units and 10 units respectively. If the consumer's indifference curve is tangent to the budget line at the point where the consumer is consuming 20 units of the first good, what is the consumer's marginal rate of substitution?
A. 1
B. 2
C. 3
D. 4
Question 5
A risk management strategy involves identifying, assessing, and mitigating risks. If a company identifies a risk that has a 20% chance of occurring and a potential loss of ₦1 billion, what is the expected value of this risk?
A. ₦200 million
B. ₦400 million
C. ₦600 million
D. ₦800 million
Question 6
A sole trader is sued for negligence by a customer who was injured while using a product sold by the trader. The customer claims that the trader failed to provide adequate warnings and instructions for the safe use of the product. Which of the following is the most likely outcome?
A. The court will rule in favor of the customer because the trader was negligent in providing warnings and instructions.
B. The court will rule in favor of the trader because the customer assumed the risk of using the product.
C. The court will rule in favor of the customer because the trader failed to provide adequate product liability insurance.
D. The court will rule in favor of the trader because the customer failed to follow the instructions for safe use.
Question 7
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Tax benefits
C. Easy setup and management
D. Flexibility in decision-making
Question 8
A firm is considering two different modes of transportation to deliver its products to customers. Mode A costs 10 units per unit delivered and has a fixed cost of 100 units. Mode B costs 8 units per unit delivered and has a fixed cost of 50 units. If the firm needs to deliver 20 units, which mode of transportation should it choose?
A. Mode A
B. Mode B
C. Both modes are equally expensive
D. Neither mode is suitable
Question 9
A sole trader's profit is calculated as the difference between total revenue and total cost. If the total revenue is ₦250,000 and the total cost is ₦180,000, what is the sole trader's profit?
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 10
A company's articles of association can be amended by a special resolution passed by a majority of at least 75% of the members present and voting. What is the purpose of this special resolution?
A. To increase the company's authorized capital
B. To change the company's name
C. To alter the company's objects
D. To reduce the company's authorized capital
Question 11
A consumer has a utility function given by U = 2A + 3B, where A and B are the quantities of goods A and B consumed, respectively. If the consumer spends 100 units on the two goods, how much utility will they derive from consuming 20 units of good A?
A. 40 units
B. 50 units
C. 60 units
D. 70 units
Question 12
A company's supply chain involves the movement of goods from suppliers to customers. If a company decides to implement a just-in-time (JIT) inventory system, what will be the effect on its inventory costs?
A. Increase
B. Decrease
C. No effect
D. Depend on market conditions
Question 13
A company's marketing strategy involves creating a new product line that targets a specific demographic. This is an example of
A. segmentation
B. target marketing
C. positioning
D. product differentiation
Question 14
A transport company uses a just-in-time inventory system to manage its warehouse. What is the primary advantage of this system?
A. Reduced storage costs
B. Improved inventory accuracy
C. Increased customer satisfaction
D. Reduced transportation costs
Question 15
A bank is considering issuing a new type of loan product that will offer customers a lower interest rate than their current loan products. However, the bank's risk management team is concerned that the new loan product will increase the bank's credit risk. Which of the following is the most likely outcome?
A. The bank will benefit from the new loan product because it will attract more customers and increase revenue.
B. The bank will lose money from the new loan product because it will increase credit risk and lead to defaults.
C. The bank will not benefit from the new loan product because it will not be able to hedge against credit risk.
D. The bank will not lose money from the new loan product because it will be able to manage credit risk effectively.

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