POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a production capacity of 10,000 units per month. The demand for the product is 12,000 units per month. What is the level of production specialization needed to meet the demand?
A. 50%
B. 75%
C. 100%
D. 150%
Question 2
A company is considering implementing a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 3
A company is considering launching a new product in a market where there are already several established brands. The company has conducted market research and has determined that the new product will have a market share of 20%. What is the company's expected revenue from the new product?
A. ₦1,000,000
B. ₦2,000,000
C. ₦3,000,000
D. ₦4,000,000
Question 4
A company is considering two different production processes for its new product. Process A requires an initial investment of ₦1,500,000 and has a variable cost of ₦200 per unit. Process B requires an initial investment of ₦2,000,000 and has a variable cost of ₦150 per unit. If the company expects to sell 10,000 units of the product, which process should it choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 5
A company has a production cost of ₦10 per unit and a selling price of ₦20 per unit. What is the profit per unit?
A. ₦5
B. ₦10
C. ₦15
D. ₦20
Question 6
Determine the optimal storage capacity for a warehouse with a maximum floor area of 5000 square meters, a ceiling height of 6 meters, and a desired storage density of 5 pallets per square meter. Assume a standard pallet size of 1.2 meters by 0.8 meters.
A. 2000 pallets
B. 3000 pallets
C. 4000 pallets
D. 5000 pallets
Question 7
A company's production process involves the transformation of raw materials into finished goods. What is the primary type of production process?
A. Batch production
B. Mass production
C. Continuous production
D. Job production
Question 8
A firm is considering two transportation options: Option A involves a fixed cost of ₦10,000 and a variable cost of ₦5 per unit, while Option B involves a fixed cost of ₦5,000 and a variable cost of ₦10 per unit. If the firm expects to transport 1,000 units, which option has a lower total cost?
A. Option A has a lower total cost.
B. Option B has a lower total cost.
C. Both options have the same total cost.
D. Neither option has a lower total cost.
Question 9
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's marginal revenue function is MR = 200 - 4Q, what is the price elasticity of demand?
A. -0.5
B. -1
C. -2
D. -3
Question 10
A company's financial statements show a significant increase in revenue, but a decrease in profit. What could be the reason for this discrepancy?
A. Inflation has led to a decrease in the purchasing power of the company's revenue.
B. The company has increased its expenses to maintain its market share.
C. The company has invested in new projects that have not yet generated profits.
D. The company has changed its accounting methods, leading to a decrease in reported profits.
Question 11
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If L = 4 and K = 9, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 4
Question 12
A consumer protection agency is considering a complaint against a company that has been accused of
A. false advertising
B. unfair competition
C. breach of contract
D. negligence
Question 13
A firm is considering outsourcing its production to a foreign country. The firm has determined that the cost of production in the foreign country is 30% lower than in the home country. However, the firm also expects to incur additional costs of ₦500,000 due to transportation and logistics. What is the net effect on the firm's costs of outsourcing production?
A. The firm's costs will decrease by 30%
B. The firm's costs will increase by 10%
C. The firm's costs will remain the same
D. The firm's costs will increase by 20%
Question 14
A foreign trade agreement between two countries involves the exchange of goods and services. What is the primary type of foreign trade agreement?
A. Export agreement
B. Import agreement
C. Reciprocal trade agreement
D. Multilateral trade agreement
Question 15
A firm is considering two investment options: Option A has a 20% chance of returning ₦100,000 and a 80% chance of returning ₦0, while Option B has a 50% chance of returning ₦50,000 and a 50% chance of returning ₦0. Which option has a higher expected return?
A. Option A has a higher expected return.
B. Option B has a higher expected return.
C. Both options have the same expected return.
D. Neither option has a higher expected return.

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