POST UTME IGBINEDION UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's cost function is given by C = 100 + 2L + 3K, where C is cost, L is labor, and K is capital. If labor increases by 10% and capital remains constant, what is the percentage change in cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 2
A firm is considering two different insurance policies to protect against losses. Policy A has a premium of ₦20,000 and pays out ₦50,000 in the event of a loss. Policy B has a premium of ₦30,000 and pays out ₦60,000 in the event of a loss. If the probability of a loss is 0.05, what is the expected value of Policy A?
A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000
Question 3
A company's marketing strategy involves a mix of promotional activities to create awareness and stimulate demand for its products. Which of the following is a type of promotional mix?
A. Advertising
B. Sales promotion
C. Public relations
D. Direct marketing
Question 4
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Flexibility in decision-making
Question 5
A bank's balance sheet shows its assets, liabilities, and equity. Which of the following is a type of asset?
A. Cash
B. Accounts receivable
C. Property, plant, and equipment
D. Intangible assets
Question 6
A company uses a just-in-time inventory system to manage its stock levels. Which of the following is a benefit of this system?
A. Reduced inventory costs
B. Improved customer satisfaction
C. Increased inventory turnover
D. Better forecasting
Question 7
A 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 8
A company's revenue function is given by R = 1000 + 20L, where R is revenue and L is labor. If labor increases by 20%, what is the percentage change in revenue?
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
A consumer protection law requires that all businesses provide a 30-day cooling-off period for customers to cancel their purchases. If a customer purchases a product on January 1st and wants to cancel, what is the latest date they can cancel their purchase?
A. January 1st
B. January 15th
C. February 1st
D. February 15th
Question 10
A firm's revenue function is given by R = 100x - 2x^2. If the firm wants to maximize its revenue, what is the optimal level of output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 11
A firm's cost function is given by C = 50 + 2x + 0.01x^2. If the firm wants to minimize its cost, what is the optimal level of output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 12
A sole trader is a type of business ownership where one person owns and operates the business. Which of the following is a characteristic of a sole trader?
A. Limited liability
B. Unlimited liability
C. Partnership
D. Company
Question 13
A company has a capital structure consisting of 60% equity and 40% debt. If the company's cost of equity is 12% and the cost of debt is 6%, what is the company's weighted average cost of capital (WACC)?
A. 8%
B. 9%
C. 10%
D. 11%
Question 14
A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following is NOT a type of financial intermediary?
A. Commercial bank
B. Investment bank
C. Central bank
D. Insurance company
Question 15
A company is considering exporting its product to a foreign market. The company has a fixed cost of ₦50,000 and a variable cost of ₦20 per unit. If the company sells 10,000 units in the foreign market, what is the total revenue?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000

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