POST UTME BABCOCK UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a just-in-time (JIT) inventory system, what is the primary goal of the reorder point?
A. To minimize inventory costs
B. To maximize inventory turnover
C. To ensure that stockouts are minimized
D. To reduce lead times
Question 2
A firm's demand function is given by P = 100 - 2Q, where P is the price and Q is the quantity demanded. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal quantity?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 3
A company has a 10% dividend yield on its shares. If the current market price of the shares is ₦100, what is the expected dividend payment per share?
A. ₦10
B. ₦11
C. ₦12
D. ₦13
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 100 units of output, and the wage rate is ₦100 per unit of labor, and the rental rate of capital is ₦200 per unit of capital, what is the firm's total cost?
A. ₦5000
B. ₦6000
C. ₦7000
D. ₦8000
Question 5
A warehouse's inventory turnover ratio is calculated as the cost of goods sold divided by the average inventory level, multiplied by
A. 2
B. 3
C. 4
D. 365
Question 6
A warehouse has a storage capacity of 10,000 units. If 5,000 units are already stored, what is the remaining storage capacity?
A. 5,000 units
B. 10,000 units
C. 15,000 units
D. 20,000 units
Question 7
A company's insurance policy can be considered comprehensive if it covers all types of risks, including liability and property damage. True or False?
A. True
B. False
C. Depends on the policy's terms
D. Not applicable
Question 8
A company is considering investing in a new project. The project requires an initial investment of ₦1,000,000 and is expected to generate a profit of ₦200,000 in the first year, ₦250,000 in the second year, and ₦300,000 in the third year. If the company's cost of capital is 12%, what is the net present value of the project?
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000
Question 9
A company exports 10,000 units of goods to a foreign country. The FOB (Free on Board) price is 10 per unit, and the CIF (Cost, Insurance, and Freight) price is 12 per unit. What is the total value of the export in US dollars?
A. 120,000
B. 130,000
C. 140,000
D. 150,000
Question 10
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a commodity in such a market?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦200, 40 units
Question 11
A firm's export price is the price at which it sells its product to foreign buyers, and is typically denominated in
A. local currency
B. foreign currency
C. barter
D. countertrade
Question 12
A company X has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 13
A bank's reserve requirement is the minimum percentage of deposits that it must hold in reserve, rather than lending out. This is typically set by the
A. central bank
B. commercial bank
C. government
D. stock exchange
Question 14
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. shift to the left
Question 15
A bank's primary function is to act as a
A. depository institution
B. investment bank
C. commercial bank
D. central bank

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