POST UTME BOWEN UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's inventory management system uses the Economic Order Quantity (EOQ) model to determine the optimal order quantity. The EOQ model is given by the formula: Q = √(2DS/H), where Q is the optimal order quantity, D is the annual demand, S is the ordering cost per order, and H is the holding cost per unit. If the annual demand is 10,000 units, the ordering cost per order is ₦500, and the holding cost per unit is ₦20, calculate the optimal order quantity.
A. 1,000
B. 5,000
C. 10,000
D. 20,000
Question 2
A firm is considering expanding its production capacity. The firm's production function is given by ( Q = 2L^0.5K^{0.25} ), where Q is the quantity produced, L is the labor input, and K is the capital input. The firm has 100 units of labor and 150 units of capital. What is the marginal product of labor?
A. 1.5
B. 2.5
C. 3.5
D. 4.5
Question 3
A company's stock control system uses the First-In-First-Out (FIFO) method to determine the cost of goods sold. The company has the following inventory levels: 100 units at ₦10 each, 200 units at ₦20 each, and 300 units at ₦30 each. If the company sells 500 units, what is the total cost of goods sold?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 4
A consumer protection agency receives a complaint from a customer who purchased a product online. The customer alleges that the product was not as described and that the seller failed to provide a refund. The agency needs to determine whether the seller breached the Consumer Protection Act. Which of the following is a key provision of the Consumer Protection Act that the agency should consider?
A. Section 2(1) - Definition of consumer
B. Section 3(1) - Right to information
C. Section 4(1) - Right to fair and honest dealing
D. Section 5(1) - Right to compensation
Question 5
A company is considering the introduction of a new production process. The process has a high potential for efficiency, but it also carries a high level of risk. What type of production process is this?
A. A high-efficiency production process
B. A low-efficiency production process
C. A high-risk production process
D. A low-risk production process
Question 6
A bank is considering the introduction of a new loan product. The product has a high interest rate, but it also has a low risk of default. What type of loan product is this?
A. A high-risk loan product
B. A low-risk loan product
C. A high-interest loan product
D. A low-interest loan product
Question 7
A firm's revenue function is given by the equation R = 2Q - 3, where R is the total revenue and Q is the quantity produced. If the firm produces 20 units, what is the total revenue?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 8
A company's insurance policy covers losses due to fire, theft, and natural disasters. The policy has a deductible of ₦50,000 and a premium of ₦200,000 per year. If the company suffers a loss of ₦150,000 due to fire, how much will the insurance company pay?
A. ₦100,000
B. ₦50,000
C. ₦0
D. ₦150,000
Question 9
A sole trader has a business income of 100,000 and a business expense of 80,000. What is the sole trader's business profit?
A. 20,000
B. 30,000
C. 40,000
D. 50,000
Question 10
A sole trader has a business income of ₦500,000 and expenses of ₦300,000. What is the sole trader's profit before tax?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 11
A company is considering a new marketing strategy to increase sales. The strategy involves offering a discount of 15% on all products. However, the company also wants to ensure that the average revenue per customer does not decrease. If the current average revenue per customer is ₦1,500, what is the minimum price at which the company must sell each product to maintain the average revenue per customer?
A. ₦1,300
B. ₦1,400
C. ₦1,500
D. ₦1,600
Question 12
A life insurance policy has a premium of ₦10,000 per annum. If the policyholder dies after 5 years, what is the benefit payment to the beneficiary?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 13
The diagram below represents a production possibility frontier. If the economy is currently at point A, which of the following is a consequence of a shift to point B?
A. An increase in the production of both goods
B. A decrease in the production of both goods
C. An increase in the production of good X and a decrease in the production of good Y
D. A decrease in the production of good X and an increase in the production of good Y
Question 14
A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.
A. The owner's personal assets are protected from business debts.
B. The owner's personal assets are at risk of being seized to settle business debts.
C. The business is responsible for the owner's personal debts.
D. The owner's personal debts are responsible for the business's liabilities.
Question 15
A company is considering a new production strategy to increase efficiency. The strategy involves implementing a just-in-time inventory system. If the company currently holds an average inventory of 5,000 units and the cost of holding inventory is ₦500 per unit per month, what is the total cost of holding inventory?
A. ₦2,500,000
B. ₦3,000,000
C. ₦4,000,000
D. ₦5,000,000

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