POST UTME UNILORIN 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank is considering two different investment options for its customers. Option A has a return of 5% per year and a risk level of 2. Option B has a return of 10% per year and a risk level of 4. Which option has a higher Sharpe ratio?
A. Option A
B. Option B
C. Both options have the same Sharpe ratio
D. Neither option has a higher Sharpe ratio
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, how many units of capital (K) are required?
A. 4
B. 8
C. 16
D. 32
Question 3
A company is considering the introduction of a new product line. The product has a high fixed cost of ₦5 million and a variable cost of ₦10,000 per unit. The selling price of the product is ₦20,000 per unit. If the company expects to sell 10,000 units, what is the minimum revenue required to break even?
A. ₦50 million
B. ₦60 million
C. ₦70 million
D. ₦80 million
Question 4
A company's cash flow statement shows a net cash inflow of ₦1,500,000. If the company's current assets are ₦2,500,000 and its current liabilities are ₦1,000,000, what is the company's working capital?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 5
A company has a business interruption insurance policy that covers losses due to natural disasters. The policy has a deductible of ₦500,000. If the company suffers a loss of ₦1,500,000 due to a flood, how much will the insurance company pay?
A. ₦1,000,000
B. ₦1,500,000
C. ₦1,000,000 + ₦500,000
D. ₦1,500,000 - ₦500,000
Question 6
A consumer purchases a product with a price of ₦1,500 and a 10% discount. What is the amount of the discount?
A. ₦150
B. ₦150.00
C. ₦150.00
D. ₦150.00
Question 7
A company is considering forming a partnership with another company. The partnership would require an initial investment of ₦250,000 and would generate annual profits of ₦50,000. If the company wants to maximize its returns, which of the following statements is true?
A. The company should form the partnership
B. The company should not form the partnership
C. The company should form the partnership if they can get a majority stake
D. The company should form the partnership if they can get a minority stake
Question 8
A consumer is considering purchasing a product that costs ₦500. The consumer has a budget of ₦1,000 and has already spent ₦300 on other products. If the consumer wants to maximize their satisfaction, which of the following statements is true?
A. The consumer should purchase the product
B. The consumer should not purchase the product
C. The consumer should purchase the product if they can get a discount
D. The consumer should purchase the product if they can get a refund
Question 9
A company's income statement shows a net income of ₦1,000,000. If the company's total assets are ₦5,000,000 and its total liabilities are ₦2,000,000, what is the company's return on equity?
A. 20%
B. 25%
C. 30%
D. 35%
Question 10
A company is sued for violating the Consumer Protection Act. The company's defense is that the consumer failed to read the fine print on the contract. Which of the following is the most likely outcome?
A. The court will rule in favor of the company.
B. The court will rule in favor of the consumer.
C. The case will be dismissed due to lack of evidence.
D. The company will be required to pay damages to the consumer.
Question 11
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of labor hours, and H is the number of hours of capital used. If the firm wants to increase its production by 20% while keeping the labor hours constant at 100, how many more hours of capital should it use?
A. 50
B. 75
C. 100
D. 125
Question 12
A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment of ₦10 million, but it is expected to generate ₦20 million in revenue per year for 5 years. Strategy B involves a lower initial investment of ₦5 million, but it is expected to generate ₦15 million in revenue per year for 3 years. Which strategy has a higher net present value (NPV)?
A. Strategy A
B. Strategy B
C. Both strategies have the same NPV
D. Neither strategy has a higher NPV
Question 13
A company is considering forming a partnership with another company. The partnership would require an initial investment of ₦200,000 and would generate annual profits of ₦50,000. If the company wants to maximize its returns, which of the following statements is true?
A. The company should form the partnership
B. The company should not form the partnership
C. The company should form the partnership if they can get a majority stake
D. The company should form the partnership if they can get a minority stake
Question 14
A company is considering forming a joint venture with another company. The joint venture would require an initial investment of ₦300,000 and would generate annual profits of ₦75,000. If the company wants to maximize its returns, which of the following statements is true?
A. The company should form the joint venture
B. The company should not form the joint venture
C. The company should form the joint venture if they can get a majority stake
D. The company should form the joint venture if they can get a minority stake
Question 15
A company is considering launching a new product. The marketing team has developed a campaign that includes a 30-second television commercial and a series of print ads. Which of the following is the primary goal of the marketing campaign?
A. To increase brand awareness among the target audience.
B. To generate leads and drive sales.
C. To build customer loyalty and retention.
D. To launch a new product line.

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