POST UTME BOWEN UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's revenue function is given by R = 100x - 2x^2, where x is the number of units sold. If the firm wants to maximize its revenue, what is the optimal number of units to sell?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 2
A company has a business interruption insurance policy with a deductible of ₦50,000. If the company suffers a loss of ₦200,000, what is the amount payable under the policy?
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 3
A company's insurance policy covers losses due to fire. What is the primary type of insurance policy this company has?
A. Fire insurance
B. Liability insurance
C. Property insurance
D. Casualty insurance
Question 4
A company has a risk management strategy that involves diversification. If the company has a portfolio of 5 assets with a correlation coefficient of 0.2, what is the standard deviation of the portfolio?
A. 10%
B. 12%
C. 15%
D. 18%
Question 5
The diagram below shows the demand and supply curves for a perfectly competitive market. What is the equilibrium price and quantity?
A. ₦100, 100 units
B. ₦150, 50 units
C. ₦200, 200 units
D. ₦250, 250 units
Question 6
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
B. Tax benefits
C. Flexibility in decision-making
D. No need for formal accounting records
Question 7
A firm's cost of capital is the minimum return that investors require in order to invest in the firm. Which of the following is a correct method of calculating a firm's cost of capital?
A. Weighted average cost of capital (WACC)
B. Cost of debt
C. Cost of equity
D. Cost of preferred stock
Question 8
A consumer purchases a product from a retailer, but the product is defective. The consumer seeks redress under the Consumer Protection Act. What is the legal basis for the consumer's claim?
A. The Sale of Goods Act.
B. The Consumer Protection Act.
C. The Companies Act.
D. The Trademarks Act.
Question 9
A consumer purchases a product from a retailer, but the product is defective. The consumer seeks redress under the Consumer Protection Act. What is the first step the consumer should take?
A. File a complaint with the National Consumer Protection Agency.
B. Seek a refund from the retailer.
C. Contact the manufacturer for a replacement.
D. Take the product to a consumer ombudsman.
Question 10
A warehouse manager is responsible for storing and managing inventory. What is the name of the system used to track inventory levels?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. Just-In-Time (JIT)
D. Inventory Management System (IMS)
Question 11
The concept of 'moral hazard' in insurance is closely related to which of the following?
A. Adverse selection
B. Moral hazard
C. Risk aversion
D. Diversification
Question 12
The diagram below shows the production possibilities frontier for a country. What is the opportunity cost of producing 100 units of good X?
A. 50 units of good Y
B. 100 units of good Y
C. 200 units of good Y
D. 300 units of good Y
Question 13
A firm's revenue is calculated by multiplying its price by the quantity sold. If the price of a product is ₦200 and the quantity sold is 50 units, what is the revenue?
A. ₦10,000
B. ₦9,000
C. ₦8,000
D. ₦7,000
Question 14
A firm's decision to invest in a new project is influenced by the following factors, EXCEPT:
A. Expected return on investment
B. Risk of the project
C. Government regulations
D. Technological advancements
Question 15
In a sole trade business, what is the primary source of finance?
A. Owner's savings
B. Bank loans
C. Government grants
D. Investments

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