POST UTME MADONNA UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If labor and capital are increased by 20% and 15% respectively, calculate the percentage change in cost.
A. 10%
B. 12%
C. 15%
D. 18%
Question 2
A company's marketing strategy involves creating a brand identity that is consistent across all channels. What is the primary goal of this strategy?
A. To increase sales
B. To build brand awareness
C. To create a unique selling proposition
D. To establish a strong brand identity
Question 3
A firm is considering two investment projects. Project A has a 5-year life, and Project B has a 10-year life. Both projects have the same initial investment of ₦100,000. Project A has a cash inflow of ₦20,000 per year for 5 years, while Project B has a cash inflow of ₦10,000 per year for 10 years. Which project has a higher net present value (NPV)?
A. Project A
B. Project B
C. Both projects have the same NPV.
D. Neither project has a positive NPV.
Question 4
A company's financial statements are audited annually by an independent auditor. The auditor's report is most likely to include which of the following?
A. A clean audit report with no qualifications
B. A qualified audit report with a material weakness
C. A disclaimer of opinion due to lack of information
D. An adverse audit report due to misstatement of financials
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor and capital are increased by 20% and 15% respectively, calculate the percentage change in output.
A. 10%
B. 12%
C. 15%
D. 18%
Question 6
A consumer has a budget of ₦1,000,000 and a utility function given by U(x,y) = 2x + 3y. The prices of x and y are ₦500 and ₦200, respectively. What is the optimal bundle of x and y that maximizes utility?
A. x = 1000, y = 2500
B. x = 1500, y = 2000
C. x = 2000, y = 1500
D. x = 2500, y = 1000
Question 7
A company's marketing strategy involves a 30% increase in advertising expenditure. If the initial advertising expenditure was ₦1,500,000, calculate the new advertising expenditure.
A. ₦1,950,000
B. ₦1,800,000
C. ₦1,700,000
D. ₦1,600,000
Question 8
A company's marketing strategy involves a 30% increase in advertising expenditure. If the initial advertising expenditure was ₦1,500,000, calculate the new advertising expenditure.
A. ₦1,950,000
B. ₦1,800,000
C. ₦1,700,000
D. ₦1,600,000
Question 9
A firm is considering a new product launch. The product has a fixed cost of ₦500,000 and a variable cost of ₦100 per unit. The selling price of the product is ₦200 per unit. What is the break-even point in units?
A. 5000 units
B. 10,000 units
C. 20,000 units
D. 50,000 units
Question 10
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 12, find the optimal quantities of x and y that maximize the consumer's utility.
A. 2
B. 3
C. 4
D. 5
Question 11
A consumer purchases a product online from a retailer. The product is defective and the consumer seeks a refund. The consumer's rights are most likely to be protected by which of the following?
A. Consumer Protection Act
B. Sales of Goods Act
C. Trade Practices Act
D. Consumer Credit Act
Question 12
A business owner wants to purchase a liability insurance policy with a premium of ₦50,000. If the deductible is ₦10,000, what is the excess?
A. ₦40,000
B. ₦30,000
C. ₦20,000
D. ₦10,000
Question 13
A company has a warehouse with a capacity of 10,000 units. If the current stock level is 8,000 units, what is the percentage of available space?
A. 80%
B. 70%
C. 60%
D. 50%
Question 14
A firm is considering the purchase of a new machine. The machine costs ₦4,000,000 and has a useful life of 10 years. The firm expects to earn an annual revenue of ₦1,800,000 from the machine. The firm's tax rate is 25%. What is the present value of the future cash flows from the machine, using a discount rate of 10%?
A. ₦4,500,000
B. ₦5,000,000
C. ₦5,500,000
D. ₦6,000,000
Question 15
A company has a production process with a fixed cost of ₦500,000 and a variable cost of ₦100 per unit. If the selling price is ₦150 per unit, what is the break-even point?
A. 5,000 units
B. 10,000 units
C. 15,000 units
D. 20,000 units

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