POST UTME CALEB UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If capital increases by 20% and labor remains constant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
A sole trader, Mr. A, has a business income of ₦500,000 and expenses of ₦200,000. If he pays 25% tax on his business income, how much will he pay in tax?
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 3
A company has purchased an insurance policy that covers against loss of goods in transit. The premium paid is ₦10,000 and the deductible is ₦5,000. If the company suffers a loss of ₦20,000, what is the amount paid by the insurance company?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 4
A company has a sole trader business structure. What is the primary disadvantage of this structure?
A. Limited liability
B. Easy to set up
C. No need for formal meetings
D. Unlimited personal liability
Question 5
A company's cost of goods sold (COGS) is ₦1,000,000 and its selling price is ₦2,000,000. If it sells 5,000 units, what is its contribution margin?
A. ₦1,250,000
B. ₦1,500,000
C. ₦1,750,000
D. ₦2,000,000
Question 6
A company is considering exporting its product to a foreign country. The company has estimated that the cost of production is ₦50 per unit, the selling price in the foreign market is ₦80 per unit, and the transportation cost is ₦20 per unit. What is the profit per unit for the company?
A. ₦10 per unit
B. ₦20 per unit
C. ₦30 per unit
D. ₦40 per unit
Question 7
A company has a production cost of ₦50 per unit and sells its product for ₦100 per unit. What is the profit per unit?
A. ₦50
B. ₦75
C. ₦50
D. ₦25
Question 8
A company has two warehouses, A and B, with capacities of 1000 and 500 units, respectively. Warehouse A has 800 units of product X, while warehouse B has 200 units. If 300 units are to be transferred from warehouse A to warehouse B, what is the new capacity of warehouse A?
A. 1200
B. 900
C. 1000
D. 800
Question 9
In a just-in-time (JIT) inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
C. To reduce lead times
D. To increase order quantities
Question 10
A consumer protection agency receives a complaint from a customer who was sold a defective product. The agency finds that the product was sold at a price higher than the recommended retail price. What is the agency's likely course of action?
A. Order the company to refund the customer's money
B. Order the company to replace the defective product
C. Order the company to pay compensation to the customer
D. Close the case as it is not a serious complaint
Question 11
A firm has a warehouse with a capacity of 500 units. The firm has 200 units of product X and 300 units of product Y. If the firm receives an order for 150 units of product X, what is the new capacity of the warehouse?
A. 350
B. 450
C. 500
D. 550
Question 12
A company's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 13
A bank offers a 5-year fixed deposit account with a 10% interest rate. If you deposit ₦100,000, how much will you receive at the end of the 5-year period?
A. ₦162,887.50
B. ₦165,000
C. ₦170,000
D. ₦175,000
Question 14
A company has a warehouse with a capacity of 1000 units. The company has 500 units of product X and 300 units of product Y. If the company receives an order for 200 units of product X, what is the new capacity of the warehouse?
A. 800
B. 900
C. 1000
D. 1100
Question 15
A firm has a warehouse with a capacity of 500 units. The firm has 300 units of product X and 200 units of product Y. If the firm receives an order for 150 units of product X, what is the new capacity of the warehouse?
A. 350
B. 450
C. 500
D. 550

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