POST UTME CHRISTOPHER UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the demand curve for a firm's product is its marginal revenue curve. What is the implication of this for the firm's profit-maximizing output level?
A. The firm will produce at the point where MR = MC
B. The firm will produce at the point where MR = P
C. The firm will produce at the point where MR = ATC
D. The firm will produce at the point where MR = AFC
Question 2
A company's supply chain management involves the transportation of goods from the supplier to the customer. What is the primary mode of transportation used in this process?
A. Road
B. Rail
C. Air
D. Sea
Question 3
A company's sole trader has a warehouse with a capacity of 1000 units. If the company's sales are expected to increase by 20% next quarter, what is the minimum number of units the warehouse must be able to store to meet the increased demand?
A. 1200
B. 1100
C. 1300
D. 1400
Question 4
A company has two warehouses, A and B, with capacities of 500 and 300 units respectively. If the company's sales are expected to increase by 15% next quarter, what is the minimum number of units the warehouses must be able to store to meet the increased demand?
A. 700
B. 800
C. 900
D. 1000
Question 5
A company's profit is ₦500,000. If it has a tax rate of 25%, what is its net profit?
A. ₦375,000
B. ₦375,000
C. ₦375,000
D. ₦375,000
Question 6
A company's cost of goods sold (COGS) is 500, and its selling price is 100 per unit. If it sells 50 units, what is the gross profit?
A. ₦2500
B. ₦5000
C. ₦7500
D. ₦10000
Question 7
A bank's financial statements show a decrease in cash reserves. What could be the reason for this decrease?
A. Increase in loans
B. Decrease in deposits
C. Increase in investments
D. Decrease in cash reserves
Question 8
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee's annual salary is ₦500,000, what is the amount of the bonus?
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 9
A firm's total revenue (TR) is given by the equation TR = P × Q, where P is the price per unit and Q is the quantity sold. If the price per unit is 10 and the quantity sold is 100 units, what is the total revenue?
A. ₦1000
B. ₦10000
C. ₦100000
D. ₦1000000
Question 10
A warehouse's storage capacity is 1000 units. If it has 500 units of stock, what is its utilization rate?
A. 50%
B. 60%
C. 70%
D. 80%
Question 11
A company has a capital structure consisting of 60% equity and 40% debt. What is the cost of capital for this company?
A. 6%
B. 8%
C. 10%
D. 12%
Question 12
A foreign trade agreement requires that a country's exports must be 50% of its total production. If a country's total production is 100 units, how many units must it export?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 13
A company's foreign trade involves importing goods from a foreign country. Which of the following is a type of foreign trade?
A. Export
B. Import
C. Domestic trade
D. International trade
Question 14
A firm's revenue is maximized when the marginal revenue (MR) equals the marginal cost (MC). However, in the case of a perfectly competitive market, the MR curve is downward sloping. Explain why this is the case.
A. Because the MR curve is downward sloping due to the law of increasing opportunity cost.
B. Because the MR curve is downward sloping due to the law of diminishing returns.
C. Because the MR curve is downward sloping due to the firm's inability to influence the market price.
D. Because the MR curve is downward sloping due to the firm's inability to influence the market quantity.
Question 15
A company's average fixed cost (AFC) is given by the equation AFC = 100 / Q, where Q is the quantity produced. If the company produces 10 units, what is the average fixed cost?
A. ₦10
B. ₦20
C. ₦30
D. ₦40

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