POST UTME MADONNA UNIVERSITY 2021 Commerce | Objective

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Question 1 View Details
In a warehouse management system, the storage capacity of a warehouse is 1000 units. If 300 units are already stored, what is the maximum number of units that can be added to the warehouse?
A. 400
Correct B. 500
C. 600
D. 700

Correct Answer: B

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Question 2 View Details
A company has two warehouses, A and B. Warehouse A has a storage capacity of 500 units, and warehouse B has a storage capacity of 300 units. If 200 units are already stored in warehouse A, and 150 units are already stored in warehouse B, what is the maximum number of units that can be added to both warehouses?
A. 400
B. 450
Correct C. 500
D. 550

Correct Answer: C

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Question 3 View Details
A bank offers a 5% interest rate on deposits. If a customer deposits ₦1000, how much interest will the customer earn in one year?
Correct A. ₦50
B. ₦55
C. ₦60
D. ₦65

Correct Answer: A

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Question 4 View Details
A company has a warehouse with a storage capacity of 1000 units. The warehouse is currently 70% full. If 200 units are added to the warehouse, what percentage of the warehouse is now full?
A. 50%
B. 55%
Correct C. 60%
D. 65%

Correct Answer: C

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Question 5 View Details
A bank offers a 10% interest rate on deposits. If a customer deposits ₦500, how much interest will the customer earn in one year?
Correct A. ₦50
B. ₦55
C. ₦60
D. ₦65

Correct Answer: A

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Question 6 View Details
In a perfectly competitive market, what is the relationship between the supply curve and the marginal cost curve?
A. The supply curve is a horizontal line above the marginal cost curve.
Correct B. The supply curve is a horizontal line below the marginal cost curve.
C. The supply curve is a downward-sloping curve above the marginal cost curve.
D. The supply curve is a downward-sloping curve below the marginal cost curve.

Correct Answer: B

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Question 7 View Details
A company's break-even point is the point at which its total revenue equals its total cost. What is the formula for calculating the break-even point?
Correct A. TR = TC
B. TR = TC + FC
C. TR = TC - FC
D. TR = TC + FC + VC

Correct Answer: A

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Question 8 View Details
A firm's demand curve is given by the equation Qd = 100 - 2P. If the firm's marginal revenue is 50, what is the price elasticity of demand?
A. 0.5
Correct B. 1
C. 2
D. 5

Correct Answer: B

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Question 9 View Details
A company is considering two investment projects. Project A has a net present value (NPV) of ₦100,000 and a payback period of 5 years. Project B has an NPV of ₦150,000 and a payback period of 3 years. Which project should the company choose?
A. Project A
Correct B. Project B
C. Both projects are equally attractive
D. Neither project is attractive

Correct Answer: B

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Question 10 View Details
A firm's production function is given by the equation Q = 2L + 3K. If the firm's marginal product of labor is 2, what is the marginal product of capital?
A. 3
Correct B. 4
C. 5
D. 6

Correct Answer: B

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Question 11 View Details
A company's sole trader has a turnover of ₦1,500,000. If the sole trader's profit is 20% of the turnover, what is the sole trader's profit?
Correct A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000

Correct Answer: A

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Question 12 View Details
A consumer protection agency has the power to investigate and prosecute any person or company that engages in unfair trade practices. Which of the following is an example of an unfair trade practice?
Correct A. Misleading advertising
B. Price fixing
C. Bribery
D. False labeling

Correct Answer: A

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Question 13 View Details
A company's financial statements show that it has a net worth of ₦5,000,000 and a total debt of ₦3,000,000. What is the company's equity?
Correct A. ₦2,000,000
B. ₦1,500,000
C. ₦1,000,000
D. ₦500,000

Correct Answer: A

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Question 14 View Details
A sole trader has a turnover of ₦2,000,000 and a profit of ₦300,000. What is the sole trader's profit margin?
A. 15%
Correct B. 20%
C. 25%
D. 30%

Correct Answer: B

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Question 15 View Details
A company's financial statements show that it has a net worth of ₦10,000,000 and a total debt of ₦8,000,000. What is the company's equity?
Correct A. ₦2,000,000
B. ₦1,500,000
C. ₦1,000,000
D. ₦500,000

Correct Answer: A

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Question 16 View Details
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is likely to be
A. inelastic
Correct B. elastic
C. unit elastic
D. perfectly inelastic

Correct Answer: B

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Question 17 View Details
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, then the firm's current output level is
A. 24
B. 36
Correct C. 48
D. 60

Correct Answer: C

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Question 18 View Details
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. If the consumer's current consumption bundle is (x,y) = (4,2), then the consumer's current utility level is
A. 14
Correct B. 16
C. 18
D. 20

Correct Answer: B

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Question 19 View Details
A firm's cost function is given by C(L,K) = 2L + 3K. If the firm's current labor and capital inputs are L = 8 and K = 6, respectively, then the firm's current total cost is
A. 50
Correct B. 60
C. 70
D. 80

Correct Answer: B

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Question 20 View Details
A consumer's budget constraint is given by the equation 2x + 3y = 12. If the consumer's current consumption bundle is (x,y) = (2,2), then the consumer's current expenditure is
A. 8
B. 10
Correct C. 12
D. 14

Correct Answer: C

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Question 21 View Details
The concept of 'Gross Domestic Product' (GDP) is a measure of the total value of all final goods and services produced within a country's borders over a specific time period. Which of the following is NOT a component of GDP?
A. Personal Consumption Expenditure
B. Government Consumption Expenditure
C. Net Exports
Correct D. Value of Imports

Correct Answer: D

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Question 22 View Details
A firm's marketing mix is a combination of four key elements: product, price, promotion, and place. Which of the following is NOT a type of product?
A. Product Line
B. Product Mix
C. Product Life Cycle
Correct D. Product Positioning

Correct Answer: D

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Question 23 View Details
A firm's financial statements provide information about its financial performance and position. Which of the following financial statements is NOT a primary financial statement?
A. Balance Sheet
B. Income Statement
C. Cash Flow Statement
Correct D. Statement of Changes in Equity

Correct Answer: D

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Question 24 View Details
A firm's marketing strategy is a long-term plan that outlines its marketing goals and objectives. Which of the following is NOT a type of marketing strategy?
A. Market Development
B. Product Development
C. Diversification
Correct D. Market Penetration

Correct Answer: D

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Question 25 View Details
A firm's financial leverage refers to the use of debt financing to fund its operations. Which of the following is NOT a type of financial leverage?
A. Operating Leverage
B. Financial Leverage
C. Tax Leverage
Correct D. Market Leverage

Correct Answer: D

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