POST UTME KSU 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's cost function is given by C = 2L + 3K. If the firm's current labor and capital inputs are L = 4 and K = 6, respectively, calculate the firm's current total cost.
A. 20
B. 30
C. 40
D. 50
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, calculate the firm's current output.
A. 24
B. 36
C. 48
D. 60
Question 3
A commercial bank's primary function is to act as a _______ between the surplus units and the deficit units in the economy.
A. Financial intermediary
B. Investment banker
C. Merchant banker
D. Stockbroker
Question 4
In a sole trade business, what is the primary advantage of using a sole trader's personal assets to finance the business?
A. Increased risk of personal liability
B. Improved cash flow management
C. Enhanced business credibility
D. Reduced tax liability
Question 5
A business has a marketing budget of ₦1,000,000, allocated as follows: 30% for advertising, 20% for sales promotion, and 50% for public relations. If the advertising budget is ₦150,000, what is the public relations budget?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 6
A firm has a cost function given by C = 2L + 3K. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the optimal level of labor and capital to minimize the cost of production?
A. L = 50, K = 100
B. L = 100, K = 50
C. L = 200, K = 25
D. L = 25, K = 200
Question 7
A firm's revenue function is given by R(x) = 2x^2 + 3x. What is the rate of change of revenue with respect to output when x = 2?
A. 13
B. 15
C. 17
D. 19
Question 8
A firm's cost function is given by C(x) = 2x^2 + 3x + 1. What is the marginal cost function?
A. 4x + 3
B. 2x + 1
C. x^2 + 3x
D. 2x^2 + 3
Question 9
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, what is the consumer's optimal consumption bundle?
A. (2, 2)
B. (3, 1)
C. (4, 0)
D. (0, 4)
Question 10
A consumer protection law requires businesses to provide a 30-day cooling-off period for customers to cancel their purchases. If a customer purchases a product on January 1st and wishes to cancel, what is the latest date they can cancel the purchase?
A. January 31st
B. February 1st
C. February 28th
D. March 1st
Question 11
A sole trader's business is registered with the Corporate Affairs Commission (CAC). The CAC issues a certificate of registration to the sole trader. What is the purpose of the certificate of registration?
A. To prove the sole trader's identity.
B. To verify the sole trader's business name.
C. To confirm the sole trader's business registration.
D. To obtain a tax clearance certificate.
Question 12
A company's financial statements are audited annually by an independent auditor. The auditor's report is based on the audit evidence obtained from the company's records and other relevant information. Which of the following is a limitation of the auditor's report?
A. The auditor's report may not reflect the company's true financial position.
B. The auditor's report may not be based on the company's actual transactions.
C. The auditor's report may not be relevant to the company's future financial performance.
D. The auditor's report may not be based on the company's accounting policies.
Question 13
A firm's revenue function is given by R = 2x^2 + 3x - 4. If the firm's marginal revenue function is MR = 4x + 3, what is the firm's optimal output level?
A. 1 unit
B. 2 units
C. 3 units
D. 4 units
Question 14
A company's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). The company's auditor reviews the financial statements to ensure that they are presented fairly and in accordance with the GAAP. What is the primary responsibility of the auditor?
A. To prepare the financial statements.
B. To review the financial statements.
C. To audit the financial statements.
D. To certify the financial statements.
Question 15
The _______ of a company refers to the process of dividing the company's ownership into smaller units, known as shares.
A. Capitalization
B. Division
C. Issuance
D. Distribution

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