POST UTME IGBINEDION UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A business purchases a liability insurance policy to protect against potential lawsuits. Which of the following is a key feature of this type of insurance?
A. The policy covers only the business's assets
B. The policy covers only the business's liabilities
C. The policy covers both the business's assets and liabilities
D. The policy does not cover any of the business's assets or liabilities
Question 2
A firm specializes in producing only one product. This specialization leads to economies of scale in production, which in turn results in lower average costs. However, this specialization also limits the firm's ability to respond to changes in market demand. What is the name of this phenomenon?
A. Economies of scale
B. Diseconomies of scale
C. Limited economies of scale
D. Limited diseconomies of scale
Question 3
A firm's cost function is given by C(L,H) = 2L + 3H. If the firm's current labor and capital inputs are L = 4 and H = 6, respectively, what is the total cost of production?
A. ₦20
B. ₦22
C. ₦24
D. ₦26
Question 4
A company uses a third-party logistics provider to manage its supply chain. Which of the following is a benefit of this arrangement?
A. Increased flexibility in responding to changes in demand
B. Improved visibility and control over the supply chain
C. Reduced costs associated with managing the supply chain
D. Enhanced ability to negotiate with suppliers
Question 5
A company's production function is given by Q = 3L^0.5H^0.5. If the firm's current labor and capital inputs are L = 9 and H = 16, respectively, what is the marginal product of capital?
A. 1
B. 2
C. 3
D. 4
Question 6
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦1,000,000, how much cash must it reserve?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 7
A business uses a just-in-time inventory system to manage its stock levels. Which of the following is a benefit of this approach?
A. Reduced inventory costs associated with holding excess stock
B. Improved visibility and control over inventory levels
C. Enhanced ability to respond to changes in demand
D. Increased flexibility in managing the supply chain
Question 8
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦1,000,000, how much cash must it reserve?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 9
A company's sole trader has a business income of ₦500,000 and expenses of ₦300,000. What is the profit before tax?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 10
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 to 121 units, and its capital input from 100 to 121 units, by how many percentage points will its quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A company is considering two different investment projects. Project A has a 10% chance of generating ₦100,000 and a 90% chance of generating ₦0. Project B has a 20% chance of generating ₦50,000 and an 80% chance of generating ₦0. Which project has a higher expected return?
A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return
Question 12
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm increases its price from ₦50 to ₦60, by how many units will its quantity demanded decrease?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 13
A company's production function is given by Q = 2L^2 + 3K, 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 14
A company has a warehouse with a capacity of 10,000 units. If the company receives a shipment of 5,000 units, what is the new capacity of the warehouse?
A. 10,000
B. 15,000
C. 20,000
D. 25,000
Question 15
A firm has a policy of paying its employees a variable salary of ₦50 per hour, plus a fixed salary of ₦20,000 per month. If the firm has 10 employees, and each employee works for 20 hours in a week, what is the total cost of labor for the company in a week?
A. ₦1,200,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

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