POST UTME BELLS UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's transport system involves the use of specialized vehicles. What is the primary benefit of using specialized vehicles in transport?
A. Increased fuel consumption
B. Improved transport efficiency
C. Enhanced product delivery
D. Reduced labor costs
Question 2
A company has a loan of ₦500,000 at an interest rate of 10% per annum. If the company makes a payment of ₦50,000 at the end of the first year, what is the new balance?
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 3
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the primary benefit of a bank's financial intermediation function?
A. Increased risk of default
B. Improved liquidity management
C. Enhanced credit availability
D. Reduced interest rates
Question 4
A company has a policy of maintaining a cash reserve of 20% of its total assets. If the company's total assets are ₦1,000,000, what is the minimum amount of cash the company should maintain?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 5
A company's foreign exchange risk arises from its exposure to fluctuations in exchange rates. Which of the following is a method of managing foreign exchange risk?
A. Hedging
B. Diversification
C. Risk avoidance
D. Risk reduction
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm increases its labor from 100 to 120 and its capital from 100 to 120, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 7
A firm's accounts receivable turnover ratio is 8 times per year. If its average accounts receivable is ₦2,000,000, what is the total value of its annual sales?
A. ₦16,000,000
B. ₦18,000,000
C. ₦20,000,000
D. ₦22,000,000
Question 8
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor from 100 to 121 units and capital from 100 to 121 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
A company has a policy of maintaining a cash reserve of 20% of its total assets. If the company's total assets are ₦1,000,000, what is the minimum amount of cash the company should maintain?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 10
A firm's supply chain involves the transportation of goods from the supplier to the customer. Which of the following is a mode of transportation?
A. Road
B. Rail
C. Air
D. Sea
Question 11
The following table shows the number of units sold and the revenue generated by a company for a particular product over a period of 6 months. If the company's fixed costs are ₦120,000 and the variable cost per unit is ₦50, calculate the break-even point in units.
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 12
A company's cost of goods sold is ₦1,200,000. If its gross profit is ₦450,000, what is its total revenue?
A. ₦1,650,000
B. ₦1,700,000
C. ₦1,750,000
D. ₦1,800,000
Question 13
A firm's demand function is given by P = 100 - 2Q, where P is price and Q is quantity. If the firm increases price from ₦100 to ₦120, what is the percentage change in quantity demanded?
A. -20%
B. -10%
C. 10%
D. 20%
Question 14
A bank's liquidity ratio is calculated as the ratio of its liquid assets to its total deposits. If a bank has ₦1.2 billion in liquid assets and ₦2.5 billion in total deposits, what is its liquidity ratio?
A. 0.48
B. 0.48
C. 0.48
D. 0.48
Question 15
A company has a warehouse with a capacity of 10,000 units. The company's inventory is currently at 8,000 units. If the company receives a new shipment of 2,000 units, what is the new inventory level?
A. 6,000
B. 8,000
C. 10,000
D. 12,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: