POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2019 Commerce | Objective

Are you preparing for POST UTME JOSEPH AYO BABALOLA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
Determine the value of x in the equation ( log_{10} (x^2) = 4 ).
A. 10
B. 100
C. 1000
Correct D. 10000

Correct Answer: D

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Question 2
A firm specializes in producing two products, A and B. The production process for product A requires 2 hours of labor and 1 hour of machine time, while product B requires 1 hour of labor and 2 hours of machine time. If the firm has 8 hours of labor and 6 hours of machine time available, what is the optimal production plan?
Correct A. Produce 4 units of A and 2 units of B
B. Produce 2 units of A and 4 units of B
C. Produce 6 units of A and 0 units of B
D. Produce 0 units of A and 6 units of B

Correct Answer: A

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Question 3
A consumer purchases a product for ₦1,000 and sells it for ₦1,200. If the consumer incurs a transportation cost of ₦100, what is the profit made from the transaction?
A. ₦100
B. ₦200
Correct C. ₦300
D. ₦400

Correct Answer: C

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Question 4
A firm has the following cost function: ( C(x) = 2x^2 + 5x + 10 ). Determine the marginal cost when x = 5.
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 5
A firm has the following revenue function: ( R(x) = 3x^2 - 2x + 10 ). Determine the rate of change of revenue when x = 3.
A. 16
B. 18
Correct C. 20
D. 22

Correct Answer: C

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Question 6
In a sole trade business, the owner's personal and business finances are not separated. What is the primary advantage of this approach?
A. Separation of personal and business finances
B. Increased tax liability
C. Improved financial reporting
Correct D. Reduced business risk

Correct Answer: D

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Question 7
A company's marketing strategy involves creating a new product line to target a specific demographic. What type of marketing strategy is this?
A. Product differentiation
Correct B. Market segmentation
C. Target marketing
D. Positioning

Correct Answer: B

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Question 8
A warehouse is using a first-in-first-out (FIFO) inventory system. If the oldest items are sold first, what happens to the inventory levels?
Correct A. Inventory levels decrease
B. Inventory levels remain the same
C. Inventory levels increase
D. Inventory levels fluctuate

Correct Answer: A

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Question 9
A company is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased revenue
B. Reduced competition
C. Improved brand recognition
Correct D. Access to new markets

Correct Answer: D

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Question 10
A company's marketing budget is ₦1,000,000. If the company allocates 30% of the budget to advertising, how much is allocated to advertising?
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 11
A firm specializes in producing only one product. This specialization is an example of which of the following production concepts?
A. Economies of scale
Correct B. Division of labor
C. Product differentiation
D. Vertical integration

Correct Answer: B

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Question 12
A company uses the following formula to calculate its cost of goods sold: COGS = (Beginning inventory + Purchases) / 2. What is the formula for the cost of goods sold if the company uses the FIFO method?
A. COGS = (Beginning inventory + Purchases) / 2
Correct B. COGS = Beginning inventory + Purchases
C. COGS = (Beginning inventory + Purchases) / 3
D. COGS = Beginning inventory - Purchases

Correct Answer: B

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Question 13
A consumer protection law that prohibits false or misleading advertising is an example of which of the following types of laws?
A. Administrative law
B. Civil law
C. Criminal law
Correct D. Regulatory law

Correct Answer: D

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Question 14
A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following is a type of financial intermediary?
Correct A. Commercial bank
B. Investment bank
C. Central bank
D. Merchant bank

Correct Answer: A

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Question 15
A warehouse manager wants to determine the optimal storage capacity for a new warehouse. Which of the following formulas can be used to calculate the optimal storage capacity?
A. Optimal storage capacity = (Beginning inventory + Purchases) / 2
B. Optimal storage capacity = Beginning inventory + Purchases
Correct C. Optimal storage capacity = (Beginning inventory + Purchases) / 3
D. Optimal storage capacity = Beginning inventory - Purchases

Correct Answer: C

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Question 16
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: Open Market Operations (OMO), Reserve Requirements, and the Discount Rate. Which of the following is NOT a tool used by the CBN to control inflation?
Correct A. Fiscal Policy
B. Monetary Policy
C. Supply-Side Policy
D. Demand-Side Policy

Correct Answer: A

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Question 17
A firm produces two goods, X and Y, using two inputs, labor (L) and capital (K). The production function for good X is given by X = 2L^0.5K^0.5. The production function for good Y is given by Y = 3L^0.25K^0.75. If the firm has 100 units of labor and 200 units of capital, how many units of good X will it produce?
A. 100
Correct B. 200
C. 300
D. 400

Correct Answer: B

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Question 18
A country's trade balance is given by the equation: TB = X - M, where TB is the trade balance, X is the value of exports, and M is the value of imports. If the value of exports is 100 billion and the value of imports is 120 billion, what is the trade balance?
Correct A. -20 billion
B. 20 billion
C. 40 billion
D. 60 billion

Correct Answer: A

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Question 19
A company is considering two investment projects, A and B. Project A has a net present value (NPV) of 100,000 and a payback period of 5 years. Project B has a NPV of 150,000 and a payback period of 3 years. Which project should the company choose?
A. Project A
Correct B. Project B
C. Both projects are equally attractive
D. Neither project is attractive

Correct Answer: B

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Question 20
A firm is considering a new product line. The product has a fixed cost of 100,000 and a variable cost of 50 per unit. The selling price of the product is 75 per unit. If the firm expects to sell 10,000 units of the product, what is the profit per unit?
A. 25
B. 30
Correct C. 35
D. 40

Correct Answer: C

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Question 21
In a sole trade business, what is the primary advantage of adopting a specialized production process?
A. Increased efficiency
B. Reduced labor costs
C. Improved product quality
Correct D. Enhanced market competitiveness

Correct Answer: D

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Question 22
A company has a warehouse with a capacity of 10,000 units. If the current stock level is 8,000 units and the daily demand is 200 units, what is the maximum number of days the company can maintain the current stock level without reordering?
A. 30 days
B. 40 days
Correct C. 50 days
D. 60 days

Correct Answer: C

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Question 23
A risk management strategy involves diversifying investments across different asset classes. What is the primary benefit of this approach?
Correct A. Reduced risk exposure
B. Increased potential returns
C. Improved liquidity
D. Enhanced market competitiveness

Correct Answer: A

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Question 24
A company has a production process that involves the use of a machine with a 10% failure rate. What is the probability that the machine will fail within the first 5 production cycles?
A. 0.05
Correct B. 0.10
C. 0.15
D. 0.20

Correct Answer: B

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Question 25
A sole trade business has a fixed cost of ₦50,000 and a variable cost of ₦20 per unit produced. If the selling price is ₦30 per unit, what is the break-even point in terms of the number of units produced?
A. 1,000 units
B. 2,000 units
Correct C. 3,000 units
D. 4,000 units

Correct Answer: C

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