POST UTME IGBINEDION UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm exports a product to a foreign country. The firm's export function is given by the equation ( E = 2X^2 + 3Y^2 ), where E is the export quantity, X is the domestic price, and Y is the foreign price. If the domestic price is 10 units and the foreign price is 5 units, what is the export quantity?
A. 50
B. 60
C. 70
D. 80
Question 2
A firm's production function is given by Q = 2L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A bank's financial services include loans and credit facilities. Which of the following is a type of loan that is secured by collateral?
A. Mortgage Loan
B. Personal Loan
C. Overdraft Facility
D. Business Loan
Question 4
A sole trader's business is exposed to various risks, including market risk and operational risk. Which of the following is a way to manage operational risk?
A. Diversification
B. Hedging
C. Risk Transfer
D. Contingency Planning
Question 5
A firm uses a warehousing strategy to store its products. The firm's warehousing function is given by the equation ( W = 2S^2 + 3R^2 ), where W is the warehousing effort, S is the storage capacity, and R is the rental expenditure. If the storage capacity is 50 units and the rental expenditure is 20 units, what is the warehousing effort?
A. 250
B. 300
C. 350
D. 400
Question 6
A company is considering two different investment opportunities. Opportunity A has a 10% chance of returning 100,000 and a 90% chance of returning 0. Opportunity B has a 20% chance of returning 150,000 and an 80% chance of returning 0. Which opportunity has a higher expected return?
A. Opportunity A
B. Opportunity B
C. Opportunity A and Opportunity B are equally likely
D. Neither opportunity has a higher expected return
Question 7
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. If the company uses a first-in-first-out (FIFO) inventory system, what is the cost of the units shipped to the customer?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 8
A company is considering the use of a new transportation mode to deliver its products to customers. The company is evaluating the costs and benefits of using a trucking company versus a logistics company. Which of the following is the most important factor to consider when making this decision?
A. The cost of transportation
B. The reliability of the transportation mode
C. The speed of delivery
D. The environmental impact of the transportation mode
Question 9
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are added to the warehouse every day, how many days will it take to fill the warehouse to capacity?
A. 10 days
B. 15 days
C. 20 days
D. 25 days
Question 10
A company is considering two different modes of payment for its customers: cash and credit. The company charges a 5% interest rate on credit sales. If a customer purchases a product worth ₦10,000 on credit, how much will the customer pay in total?
A. ₦10,000
B. ₦10,500
C. ₦11,000
D. ₦11,500
Question 11
A firm is considering entering a new market. The firm's marketing manager estimates that the market size is 100,000 units, and the firm's market share is 20%. What is the firm's sales revenue?
A. ₦20,000,000
B. ₦25,000,000
C. ₦30,000,000
D. ₦35,000,000
Question 12
A firm's production function is given by Q = 2L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 13
A company's marketing strategy involves a mix of advertising and promotion. Which of the following is an example of a promotional strategy?
A. Sponsorship
B. Public Relations
C. Direct Marketing
D. Event Marketing
Question 14
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. If the market price is ₦100, and the firm's marginal revenue is ₦80, what is the firm's marginal cost?
A. ₦60
B. ₦80
C. ₦100
D. ₦120
Question 15
A company has a production process that requires 2 hours of labor and 1 hour of machine time. If the labor cost is ₦50 per hour and the machine cost is ₦75 per hour, what is the total cost of producing 10 units?
A. ₦1,500
B. ₦2,000
C. ₦2,500
D. ₦3,000

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