POST UTME BABCOCK UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a policy of paying its employees a fixed salary of ₦50,000 per month, plus a bonus of 10% of their monthly salary. If an employee's monthly salary is ₦40,000, what is their total monthly income?
A. ₦50,000
B. ₦44,000
C. ₦48,000
D. ₦52,000
Question 2
A firm is considering two different pricing strategies for a product. Strategy A involves charging a price of ₦100 per unit, while strategy B involves charging a price of ₦120 per unit. If the firm expects to sell 100 units of the product, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable
Question 3
A bank has a loan of ₦500,000 at an interest rate of 12% per annum compounded annually. If the interest is compounded for 2 years, what is the total amount the borrower must repay?
A. ₦562,000
B. ₦600,000
C. ₦625,000
D. ₦650,000
Question 4
A company has a total revenue of ₦1,500,000 and a total cost of ₦1,200,000. What is the profit of the company?
A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦50,000
Question 5
A risk management strategy is a plan to identify, assess, and mitigate potential risks to a business. What is the main purpose of a risk management strategy?
A. To identify and assess potential risks
B. To mitigate and manage potential risks
C. To avoid and eliminate potential risks
D. To ignore and neglect potential risks
Question 6
A firm is considering two different production processes to produce a good. Process A requires 10 units of labor and 5 units of capital to produce 100 units of the good, while process B requires 15 units of labor and 3 units of capital to produce 120 units of the good. Which process should the firm choose?
A. Process A
B. Process B
C. Both processes are equally efficient
D. Neither process is efficient
Question 7
A firm's production function is given by Q = 2L + 3K. If the firm's labor and capital inputs are increased by 20% and 15% respectively, the new production function will be
A. Q = 2.4L + 3.45K
B. Q = 2.4L + 3.15K
C. Q = 2.2L + 3.45K
D. Q = 2.2L + 3.15K
Question 8
A company's profit function is given by π = 2x - 3y. If the company's revenue is ₦100 and the prices of good x and good y are ₦2 and ₦3 respectively, what is the company's optimal bundle?
A. x = 50, y = 0.
B. x = 40, y = 10.
C. x = 30, y = 20.
D. x = 20, y = 30.
Question 9
A business is considering the use of a warehouse management system. What is the primary benefit of this system?
A. Improved inventory accuracy
B. Enhanced supply chain visibility
C. Reduced storage costs
D. Increased sales revenue
Question 10
A sole trader is a type of business ownership where one person owns and operates the business. What is the main advantage of a sole trader?
A. Easy to set up and operate
B. High level of control and decision-making
C. Limited liability and tax benefits
D. Ability to raise capital from investors
Question 11
In a sole trade business, what is the primary advantage of using a warehouse?
A. Reduced storage costs
B. Improved inventory management
C. Enhanced customer service
D. Increased sales revenue
Question 12
A country's trade balance is given by TB = X - M, where X is the value of exports and M is the value of imports. If the country's exports and imports are 100 billion and 120 billion respectively, the trade balance will be
A. -20 billion
B. 20 billion
C. -10 billion
D. 10 billion
Question 13
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's income is ₦12 and the prices of good x and good y are ₦2 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 6, y = 0.
B. x = 4, y = 2.
C. x = 2, y = 4.
D. x = 0, y = 6.
Question 14
A company's insurance policy covers losses up to ₦100,000. If the company suffers a loss of ₦120,000, what is the company's maximum payout?
A. ₦100,000.
B. ₦120,000.
C. ₦80,000.
D. ₦60,000.
Question 15
A company's sole trader has a warehouse with a capacity to store 10,000 units of goods. If the company receives an order for 5,000 units, what is the maximum number of units the company can store in the warehouse?
A. 5,000
B. 7,500
C. 10,000
D. 12,500

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