POST UTME SUMMIT UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 2
A company has a production function Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the company increases labor from 100 to 121 units and capital from 100 to 121 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A bank, First Bank, has a reserve requirement of 10% of its deposits. If the bank has a deposit of ₦10,000,000, what is the minimum amount of cash it must hold in reserve?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 4
A sole trader, Mr. A, has a business that generates an annual profit of ₦500,000. The business has a capital of ₦200,000. What is the return on investment (ROI) of the business?
A. 20%
B. 25%
C. 30%
D. 35%
Question 5
A company is considering two different production processes for a new product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, what is the break-even point for each process?
A. Process A: 2,000 units; Process B: 5,000 units
B. Process A: 3,000 units; Process B: 4,000 units
C. Process A: 4,000 units; Process B: 3,000 units
D. Process A: 5,000 units; Process B: 2,000 units
Question 6
A company is considering two different investment opportunities: Investment A, which has a 10% chance of returning ₦10,000 and a 90% chance of returning ₦0, and Investment B, which has a 20% chance of returning ₦5,000 and an 80% chance of returning ₦0. What is the expected return on Investment A?
A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000
Question 7
The concept of specialization in production is closely related to the idea of division of labor. Discuss how specialization can lead to increased productivity and efficiency in a firm.
A. Increased productivity and efficiency are achieved through the use of specialized machines and equipment.
B. Specialization leads to a decrease in the number of workers required, resulting in lower labor costs.
C. The division of labor allows for the development of new skills and expertise among workers.
D. The concept of specialization is only relevant in large-scale industrial production.
Question 8
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's fixed cost is ₦500 and its variable cost is ₦10 per unit, what is the profit-maximizing price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 9
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's fixed cost is ₦500 and its variable cost is ₦10 per unit, what is the profit-maximizing price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 10
A sole trader is considering expanding their business. What is the primary advantage of forming a company?
A. Limited liability
B. Increased tax benefits
C. Improved management structure
D. Enhanced customer service
Question 11
A firm produces two products, A and B, using two inputs, labor and capital. The production function for product A is given by Q_A = 2L^0.5K^0.5, and for product B is Q_B = 3L^0.75K^0.25. If the firm has 100 units of labor and 50 units of capital, how many units of product A and product B should it produce?
A. Q_A = 10, Q_B = 5
B. Q_A = 5, Q_B = 10
C. Q_A = 15, Q_B = 20
D. Q_A = 20, Q_B = 15
Question 12
A company is considering investing in a new transportation system. What is the primary factor that determines the feasibility of the investment?
A. Cost of transportation
B. Time of transportation
C. Reliability of transportation
D. Security of transportation
Question 13
A company is considering two different marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 5% decrease in advertising expenditure. If the company's current advertising expenditure is ₦1,000,000, what is the total advertising expenditure under Strategy A?
A. ₦1,100,000
B. ₦1,050,000
C. ₦1,000,000
D. ₦950,000
Question 14
A marketing manager is developing a new advertising campaign for a product. What is the primary goal of the campaign?
A. To increase brand awareness
B. To generate leads
C. To drive sales
D. To build customer loyalty
Question 15
The concept of risk management in insurance involves identifying, assessing, and prioritizing potential risks. Which of the following is a key step in the risk management process?
A. Risk identification
B. Risk assessment
C. Risk prioritization
D. Risk mitigation

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