POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's profit function is given by π = R - C. If the firm's revenue and cost functions are given by R = 100Q - 2Q^2 and C = 50 + 10L + 5K respectively, what is the effect of an increase in output on profit?
A. Profit increases
B. Profit decreases
C. Profit remains unchanged
D. Profit becomes perfectly elastic
Question 2
A company's articles of association state that the company's shares can be transferred only with the consent of the board of directors. What type of share is this?
A. Ordinary share
B. Preference share
C. Deferred share
D. Redeemable share
Question 3
A company has a share capital of ₦500,000 divided into 5,000 shares of ₦100 each. If the company issues 2,000 shares at a premium of ₦20 per share, what is the total amount received from the issue of shares?
A. ₦220,000
B. ₦240,000
C. ₦260,000
D. ₦280,000
Question 4
A firm uses a combination of road, rail, and air transport to move its goods. What is the main advantage of this type of transport?
A. Faster delivery
B. Cheaper delivery
C. More reliable delivery
D. More flexible delivery
Question 5
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units and already has 3,000 units in stock. If the company wants to maintain a safety stock of 20% of the total capacity, how many units can the company store in the warehouse?
A. 6,000 units
B. 8,000 units
C. 10,000 units
D. 12,000 units
Question 6
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. If the warehouse is currently 70% full, what is the probability that the company will be able to fulfill the order without running out of stock?
A. 0.7
B. 0.8
C. 0.9
D. 0.95
Question 7
A bank has a loan of ₦10,000,000 at an interest rate of 12% per annum. If the loan is compounded annually, what is the amount after 5 years?
A. ₦16,386,160
B. ₦16,386,160.00
C. ₦16,386,160.00
D. ₦16,386,160
Question 8
A firm has a production cost of ₦1,500 per unit and a selling price of ₦2,500 per unit. If the firm produces 5,000 units, what is the profit?
A. ₦6,250,000
B. ₦6,500,000
C. ₦7,000,000
D. ₦7,500,000
Question 9
A warehouse has a storage capacity of 10,000 units. If 8,000 units are already stored, what is the maximum number of units that can be added?
A. 1,000
B. 2,000
C. 3,000
D. 4,000
Question 10
A firm's cost function is given by C = 50 + 10L + 5K. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in total cost?
A. -5%
B. 0%
C. 5%
D. 10%
Question 11
A business owner purchases insurance to protect against losses due to fire. What type of insurance is this?
A. Liability insurance
B. Property insurance
C. Business interruption insurance
D. Professional indemnity insurance
Question 12
A firm uses a combination of advertising and sales promotion to market its products. What is the main advantage of this type of marketing?
A. More sales
B. More profits
C. More customer loyalty
D. More brand awareness
Question 13
A sole trader's business is registered under the Companies and Allied Matters Act 2020. What is the primary advantage of this registration?
A. Limited liability
B. Separate legal entity
C. Increased credibility
D. Reduced tax liability
Question 14
A firm is considering two different insurance policies to cover its business risks. Policy A has a premium of ₦50,000 and a deductible of ₦20,000. Policy B has a premium of ₦30,000 and a deductible of ₦10,000. If the firm expects to incur a loss of ₦100,000, what is the minimum premium that the firm needs to pay to cover the loss?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 15
A firm specializes in producing only one good. This specialization is an example of which of the following?
A. Division of Labor
B. Economies of Scale
C. Comparative Advantage
D. Opportunity Cost

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