POST UTME KSU 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The main disadvantage of a partnership is that it has
A. limited liability
B. unlimited liability
C. difficulty in decision-making
D. ease of formation
Question 2
The diagram below represents a firm's
A. marginal cost curve
B. marginal revenue curve
C. average fixed cost curve
D. average variable cost curve
Question 3
A company's Memorandum of Association is a document that outlines the company's constitution and the rights and duties of its members. Which of the following is a correct statement regarding the Memorandum of Association?
A. It outlines the company's constitution and the rights and duties of its members.
B. It outlines the company's constitution and the rights and duties of its directors.
C. It outlines the company's constitution and the rights and duties of its creditors.
D. It outlines the company's constitution and the rights and duties of its shareholders.
Question 4
A company has the following cost function: C = 2L + 3K. If the price of labor is ₦10 and the price of capital is ₦20, what is the minimum cost of production?
A. ₦30
B. ₦40
C. ₦50
D. ₦60
Question 5
A firm is considering two production methods: Method A, which costs ₦100 per unit, and Method B, which costs ₦120 per unit. If the market price is ₦150 per unit, which method should the firm use?
A. Method A
B. Method B
C. Either method is acceptable
D. Neither method is acceptable
Question 6
The diagram below represents a firm's
A. marginal cost curve
B. marginal revenue curve
C. average fixed cost curve
D. average variable cost curve
Question 7
A company's Memorandum of Association and Articles of Association are two separate documents that outline the company's constitution and internal management. Which of the following is a correct statement regarding these documents?
A. They are two separate documents that outline the company's constitution and internal management.
B. They are two separate documents that outline the company's constitution and internal management, but are not publicly available.
C. They are two separate documents that outline the company's constitution and internal management, but are not required by law.
D. They are two separate documents that outline the company's constitution and internal management, but are not binding on the company's members.
Question 8
A company's production process involves the use of a machine that produces a product with a high level of specialization. What is the type of production process?
A. Mass Production
B. Batch Production
C. Job Production
D. Continuous Production
Question 9
A warehouse manager is responsible for maintaining a stock level of 500 units. If the current stock level is 300 units and the daily demand is 20 units, what is the minimum number of units that should be ordered to meet the demand for the next 10 days?
A. 400 units
B. 500 units
C. 600 units
D. 800 units
Question 10
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
C. Sole Trader
D. Limited Liability Partnership
Question 11
A firm's break-even point is the point at which its
A. total revenue equals its fixed costs
B. total revenue equals its variable costs
C. total revenue equals its total costs
D. total revenue equals its contribution margin
Question 12
In a perfectly competitive market, what is the relationship between the supply curve and the marginal cost curve?
A. The supply curve is steeper than the marginal cost curve.
B. The supply curve is flatter than the marginal cost curve.
C. The supply curve is identical to the marginal cost curve.
D. The supply curve is a horizontal line below the marginal cost curve.
Question 13
A warehouse's inventory management system is designed to minimize
A. inventory holding costs
B. ordering costs
C. stockout costs
D. all of the above
Question 14
A firm is considering two investment opportunities: Opportunity A, which has a 10% chance of earning ₦100,000 and a 90% chance of earning ₦0, and Opportunity B, which has a 20% chance of earning ₦50,000 and an 80% chance of earning ₦0. Which opportunity should the firm choose?
A. Opportunity A
B. Opportunity B
C. Either opportunity is acceptable
D. Neither opportunity is acceptable
Question 15
A transportation company's logistics management system is designed to optimize
A. route planning
B. vehicle utilization
C. inventory management
D. all of the above

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