POST UTME AL-HIKMAH UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's financial performance can be evaluated using various metrics. Which of the following is NOT a key performance indicator (KPI) for a company's financial health?
A. Return on Equity (ROE)
B. Debt-to-Equity Ratio
C. Current Ratio
D. Gross Margin
Question 2
A sole trader is considering hiring an employee to help with the business. Which of the following is a key consideration when evaluating the decision to hire an employee?
A. The cost of hiring an employee
B. The potential increase in revenue
C. The impact on the business's cash flow
D. All of the above
Question 3
A firm's revenue function is given by R = 2x^2, where R is revenue and x is the quantity sold. If the firm sells 5 units, what is the firm's revenue?
A. ₦50
B. ₦100
C. ₦200
D. ₦500
Question 4
A firm's revenue function is given by R(x) = 2x^2 - 3x + 1. If the firm produces 5 units of output, what is the firm's total revenue?
A. ₦21
B. ₦31
C. ₦41
D. ₦51
Question 5
A company is considering the introduction of a new product line. The product requires a significant investment in marketing and advertising. Which of the following marketing strategies would be most effective in promoting the new product?
A. Social media marketing
B. Influencer marketing
C. Content marketing
D. Event marketing
Question 6
A company's articles of association may provide for the appointment of a managing director. What is the primary responsibility of a managing director?
A. To manage the company's day-to-day operations
B. To make strategic decisions on behalf of the company
C. To represent the company in legal matters
D. To oversee the company's financial transactions
Question 7
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 inputs are 16 and 9 respectively, what is the firm's output?
A. 32
B. 64
C. 128
D. 256
Question 8
A sole trader's business is exposed to the risk of a major fire that could result in significant financial losses. Which of the following insurance policies would be most suitable for the business?
A. Fire insurance policy
B. Public liability insurance policy
C. Professional indemnity insurance policy
D. Business interruption insurance policy
Question 9
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's income is ₦12, and the price of good x is ₦2, and the price of good y is ₦3, what is the consumer's optimal bundle of goods?
A. x = 3, y = 2
B. x = 2, y = 3
C. x = 4, y = 1
D. x = 1, y = 4
Question 10
A firm's revenue function is given by R(x) = 2x^2 - 3x + 1. If the firm produces 5 units of output, what is the firm's total revenue?
A. ₦21
B. ₦31
C. ₦41
D. ₦51
Question 11
In a sole trade business, the owner's personal assets are not protected from business liabilities. Which of the following is a characteristic of a sole trade business?
A. Limited liability
B. Unlimited liability
C. Partnership
D. Company
Question 12
A company is considering exporting its products to a foreign market. Which of the following is a key factor to consider when evaluating the feasibility of this decision?
A. Political stability of the foreign market
B. Economic growth rate of the foreign market
C. Cultural differences between the home and foreign markets
D. All of the above
Question 13
A company is considering the introduction of a new product line. The product requires a significant investment in marketing and advertising. Which of the following marketing strategies would be most effective in promoting the new product?
A. Social media marketing
B. Influencer marketing
C. Content marketing
D. Event marketing
Question 14
A firm is considering two production strategies: Strategy A, which involves producing 100 units of a product, and Strategy B, which involves producing 200 units of the same product. If the firm's current production cost is ₦50 per unit, what is the total production cost of Strategy A?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 15
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's income is ₦12, and the price of good x is ₦2, and the price of good y is ₦3, what is the consumer's optimal bundle of goods?
A. x = 3, y = 2
B. x = 2, y = 3
C. x = 4, y = 1
D. x = 1, y = 4

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