POST UTME NILE UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a stock of 500 units of a product. If it sells 200 units in a month, what is the new stock level?
A. 300 units
B. 400 units
C. 500 units
D. 600 units
Question 2
A company has a production function of Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the company wants to increase its output by 50%, what is the required increase in labor and capital?
A. 25% increase in labor and 25% increase in capital
B. 50% increase in labor and 50% increase in capital
C. 75% increase in labor and 75% increase in capital
D. 100% increase in labor and 100% increase in capital
Question 3
A company is considering two different modes of transportation to deliver its products: road and rail. The cost of transporting goods by road is ₦50 per kilometer, while the cost of transporting goods by rail is ₦30 per kilometer. If the company needs to transport goods for 200 kilometers, what will be the total cost of transportation by road and rail?
A. ₦10,000
B. ₦12,000
C. ₦14,000
D. ₦16,000
Question 4
A firm is considering the introduction of a new product. The product has a high fixed cost of ₦1,000,000 and a variable cost of ₦150 per unit. The selling price of the product is ₦250 per unit. If the firm expects to sell 8,000 units, what is the minimum price at which the firm must sell the product to break even?
A. ₦2,000
B. ₦2,250
C. ₦2,500
D. ₦2,750
Question 5
A company has a sole trader business structure. What is the primary advantage of this structure?
A. Limited liability
B. Easy to set up
C. No need for formalities
D. No tax benefits
Question 6
A bank's liquidity ratio is calculated by dividing its cash and liquid assets by its total assets. Which of the following is a correct example of a bank's liquidity ratio?
A. 0.5
B. 0.8
C. 0.9
D. 1.2
Question 7
A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If a customer deposits ₦100,000, how much will the customer receive at the end of the 5-year period?
A. ₦161,000
B. ₦162,000
C. ₦163,000
D. ₦164,000
Question 8
A firm's cost function is given by C = 100 + 2L + 3K, where C is cost, L is labor, and K is capital. If the firm's labor and capital inputs are 16 and 9 respectively, what is the firm's cost?
A. 400
B. 600
C. 800
D. 1,000
Question 9
A country has a trade deficit of 100 million and a trade surplus of 50 million. What is the net trade balance?
A. 50 million
B. 100 million
C. 150 million
D. 200 million
Question 10
A company has a production process that involves the transformation of raw materials into finished goods. The company uses a specialized machine to perform this transformation. Which of the following is an example of production specialization?
A. Vertical Integration
B. Horizontal Integration
C. Production Specialization
D. Economies of Scale
Question 11
A consumer purchases a product from a retailer for ₦15,000. The product is defective and the consumer returns it to the retailer, who offers a refund of ₦12,000. The consumer is also entitled to a compensation of ₦3,000 for the inconvenience caused. Calculate the total amount the consumer will receive.
A. ₦15,000
B. ₦12,000
C. ₦15,000 + ₦3,000
D. ₦12,000 + ₦3,000
Question 12
In a sole trade business, what is the primary advantage of using a cash register?
A. Improved inventory management
B. Enhanced customer service
C. Increased cash security
D. Reduced accounting complexity
Question 13
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?
A. Nigeria producing textiles and importing food
B. Nigeria producing food and importing textiles
C. Nigeria producing both textiles and food
D. Nigeria producing neither textiles nor food
Question 14
A company has a production cost of ₦500 per unit and a selling price of ₦700 per unit. If the company expects to sell 12,000 units, what is the profit per unit?
A. ₦100
B. ₦150
C. ₦200
D. ₦250
Question 15
A company has a warehouse with a capacity of 10,000 units. If it receives a shipment of 5,000 units, what is the new storage capacity?
A. 10,000 units
B. 15,000 units
C. 20,000 units
D. 25,000 units

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