POST UTME LEAD CITY UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm uses the Just-In-Time (JIT) inventory system to manage its inventory. What is the primary disadvantage of this system?
A. Increased inventory costs
B. Reduced product quality
C. Decreased customer satisfaction
D. Increased production costs
Question 2
A warehouse has a storage capacity of 10,000 units. If the warehouse is currently storing 8,000 units, what is the percentage of the warehouse's capacity that is currently being used?
A. 80%
B. 70%
C. 60%
D. 50%
Question 3
A transport company operates a fleet of buses on a route between two cities. The company charges a fare of ₦500 per kilometer. If the distance between the two cities is 200 kilometers, what is the total fare paid by a passenger for the journey?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦200,000
Question 4
A firm's revenue is 100,000 and its cost of goods sold is 60,000. What is the firm's gross profit?
A. 40,000
B. 60,000
C. 80,000
D. 100,000
Question 5
A firm's supply function is given by P = 2Q + 10. If the firm's output is 5 units, what is the price per unit?
A. 15
B. 20
C. 25
D. 30
Question 6
A firm is producing a product with the following cost function: C(x) = 2x^2 + 100x + 5000. If the selling price of the product is ₦50 per unit, how many units should the firm produce to maximize its profit?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 7
A firm uses the Just-In-Time (JIT) inventory system to manage its inventory. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved product quality
C. Increased customer satisfaction
D. Reduced production costs
Question 8
A bank's cash reserve ratio is 10%. If the bank has a cash reserve of ₦1,000,000, what is the maximum amount it can lend to customers?
A. ₦9,000,000
B. ₦10,000,000
C. ₦11,000,000
D. ₦12,000,000
Question 9
A company is considering two different marketing strategies for its product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the company's revenue function is R(x) = 100x - 2x^2 and the cost function is C(x) = 20x + 1000, which strategy should the company use?
A. Strategy A
B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable
Question 10
A company's cash flow statement shows that its net income is ₦1,000,000, its depreciation is ₦200,000, and its change in working capital is ₦300,000. What is its cash flow from operations?
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 11
A consumer purchases a product from a retailer, but the product is defective. The consumer sues the retailer for breach of contract. Which of the following is a defense available to the retailer?
A. The consumer failed to inspect the product before purchase
B. The retailer had no knowledge of the defect
C. The consumer is estopped from claiming damages
D. The product was sold as is
Question 12
A company uses the Economic Order Quantity (EOQ) model to determine its inventory levels. The EOQ formula is given by: EOQ = √(2DS/C), where D is the demand rate, S is the ordering cost, and C is the holding cost. What is the EOQ if D = 100 units, S = 10, and C = 5?
A. 14.14 units
B. 20 units
C. 28.28 units
D. 40 units
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the number of workers (L) is 25, how many machines (K) are required?
A. 10
B. 15
C. 20
D. 25
Question 14
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to control the money supply in the economy. Which of the following is a correct statement about the effect of OMO on the money supply?
A. OMO increases the money supply in the economy
B. OMO decreases the money supply in the economy
C. OMO has no effect on the money supply in the economy
D. OMO increases the money supply in the economy, but only in the short run
Question 15
A firm is producing a product with the following cost function: C(x) = 2x^2 + 100x + 5000. If the selling price of the product is ₦50 per unit, how many units should the firm produce to maximize its profit?
A. 10 units
B. 20 units
C. 30 units
D. 40 units

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