POST UTME SUMMIT UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A business owner has a 20% chance of winning a contract worth ₦500,000. What is the expected value of the contract?
A. ₦100,000
B. ₦200,000
C. ₦400,000
D. ₦500,000
Question 2
A bank is using a risk management system to identify and mitigate potential risks. Which of the following is a type of risk that this system might identify?
A. Credit risk
B. Market risk
C. Operational risk
D. Liquidity risk
Question 3
A company has two business units: A and B. Unit A has a profit of ₦120,000 and a loss of ₦80,000. Unit B has a profit of ₦150,000 and a loss of ₦70,000. What is the overall profit of the company?
A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦100,000
Question 4
A firm produces two goods, X and Y, using two inputs, labor (L) and capital (K). The production function for good X is given by Q_X = 2L^0.4K^0.6. The production function for good Y is given by Q_Y = 3L^0.7K^0.3. If the firm has 100 units of labor and 50 units of capital, how many units of good X will it produce?
A. 200
B. 250
C. 300
D. 350
Question 5
A firm's inventory turnover ratio is 8.5 times per year. If the cost of goods sold is ₦1,500,000, what is the total value of the inventory?
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,100,000
D. ₦2,400,000
Question 6
A firm's cost of goods sold is ₦1,500,000. If the firm's profit margin is 15%, what is the total revenue?
A. ₦1,750,000
B. ₦2,000,000
C. ₦2,250,000
D. ₦2,500,000
Question 7
A company's revenue function is given by R = 2Q^2. If the company sells 4 units of output, what is its total revenue?
A. ₦16
B. ₦32
C. ₦64
D. ₦128
Question 8
A firm is considering two investment projects, A and B. Project A has a net present value (NPV) of ₦100,000 and a payback period of 5 years. Project B has an NPV of ₦120,000 and a payback period of 4 years. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally good
D. Neither project is good
Question 9
A firm's inventory turnover ratio is 8.5 times per year. If the total value of the inventory is ₦2,100,000, what is the cost of goods sold?
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,100,000
D. ₦2,400,000
Question 10
A firm purchases an insurance policy to protect against losses due to fire. Which of the following is an example of risk management?
A. Risk avoidance
B. Risk transfer
C. Risk retention
D. Risk reduction
Question 11
A company has a policy of paying its employees a minimum of ₦50,000 per month. If an employee is paid a total of ₦200,000 in a month, how much of that amount is above the minimum wage?
A. ₦150,000
B. ₦120,000
C. ₦100,000
D. ₦80,000
Question 12
A company has a production cost of ₦500 per unit and a selling price of ₦700 per unit. What is the profit per unit?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 13
A firm's cost function is given by C = 2L + 3K. If the firm hires 4 units of labor and 2 units of capital, what is its total cost?
A. ₦14
B. ₦16
C. ₦18
D. ₦20
Question 14
In a perfectly competitive market, the law of diminishing marginal utility leads to a downward-sloping demand curve for a firm's product. What is the primary reason for this downward slope?
A. As consumers become satiated with the product, their willingness to pay decreases.
B. The product's quality decreases as the quantity consumed increases.
C. The product's price increases as the quantity consumed increases.
D. The product's demand is inelastic.
Question 15
A warehouse has a storage capacity of 10,000 units. If the warehouse is currently storing 8,000 units and receives an additional 2,000 units, what is the percentage of the warehouse that is currently occupied?
A. 60%
B. 70%
C. 80%
D. 90%

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