POST UTME KSU 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A warehouse has a storage capacity of 10,000 square meters. If the warehouse is currently 70% occupied, and each pallet occupies 2 square meters, how many pallets can be stored in the remaining space?
A. 1,000 pallets
B. 1,500 pallets
C. 2,000 pallets
D. 3,000 pallets
Question 2
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 4 to 9 units, and its capital input from 16 to 25 units, by how many percentage points will its quantity produced increase?
A. 10%
B. 15%
C. 20%
D. 25%
Question 3
The _______ of a firm's financial statements is a measure of its ability to generate profits.
A. profitability
B. efficiency
C. liquidity
D. solvency
Question 4
The _______ of a firm's financial statements is a measure of its ability to meet its short-term obligations.
A. liquidity
B. solvency
C. profitability
D. efficiency
Question 5
A company's revenue function is given by R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity sold. If the company sells 10 units, what is its marginal revenue?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 6
A company has a cash reserve of ₦1,000,000 and wants to invest in a project that requires an initial investment of ₦500,000. If the project has a 20% chance of success and a 10% chance of failure, what is the expected value of the project?
A. ₦750,000
B. ₦850,000
C. ₦950,000
D. ₦1,050,000
Question 7
A firm's financial leverage is measured by its debt-to-equity ratio. If a firm has a debt-to-equity ratio of 2:1, what is the firm's financial leverage?
A. 2
B. 1
C. 3
D. 4
Question 8
A company's marketing strategy involves creating a viral video campaign. If the company spends ₦1 million on production and ₦500,000 on advertising, what is the total cost of the campaign?
A. ₦1.5 million
B. ₦1.8 million
C. ₦2 million
D. ₦2.5 million
Question 9
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
C. Sole Proprietorship
D. Cooperative Society
Question 10
A firm's financial leverage is measured by its debt-to-equity ratio. If a firm has a debt-to-equity ratio of 2:1, what is the firm's financial leverage?
A. 2
B. 1
C. 3
D. 4
Question 11
A _______ is a type of business organization where ownership is divided among a large number of shareholders.
A. sole proprietorship
B. partnership
C. corporation
D. cooperative
Question 12
The _______ of a firm's financial statements is a measure of its ability to generate cash and cash equivalents.
A. cash flow
B. profitability
C. efficiency
D. liquidity
Question 13
A firm's financial leverage is measured by its debt-to-equity ratio. If a firm has a debt-to-equity ratio of 2:1, what is the firm's financial leverage?
A. 2
B. 1
C. 3
D. 4
Question 14
A bank's cash reserve ratio is 10%. If the bank has a total deposit of ₦100,000,000, how much cash must it reserve?
A. ₦10,000,000
B. ₦9,000,000
C. ₦8,000,000
D. ₦7,000,000
Question 15
A bank has a loan portfolio with a total value of ₦10,000,000. The bank wants to diversify its portfolio by investing in a new asset class. If the new asset class has a potential return of 15% and a standard deviation of 20%, what is the expected return on investment?
A. 15%
B. 18%
C. 20%
D. 22%

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